1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
STALIN [3.7K]
3 years ago
7

Estimated cash flows appear below for an investment project. The project is required rate of return (IRR) is 11.40%. What is the

discounted payback period for the project in years
Business
1 answer:
daser333 [38]3 years ago
4 0

Answer: 3.83 years

Explanation:

The Discounted Payback period is used to determine how long it would take a project to payback the investment made in it given required return adjusted cashflows.

Year 1.

= 17,000 / ( 1 + 11.4%)

= $15,260

Year 2

= 20,000/ 1.114²

= $16,116

Year 3

= 27,000/1.114³

= $19,530

Year 4

= 30,000/1.114⁴

= $19,480

Investment Balance up to year 3

= -67,000 + 15,260 + 16,116 + 19,530

= -$16,904

The amount left is smaller than the discounted Cashflow for Year 4 so the Investment will be paid back in year 4.

= 16,904/19,480

= 0.83

0.83 of year 4 will be taken to pay off Investment.

In total;

= 3 complete years + 0.83 in 4th year

= 3.83 years.

You might be interested in
What is the National Labor Relations Board responsible for?
Alexxandr [17]

The National Labor Relations Board is an independent federal agency created in 1935 by Congress to administer the National Labor Relations Act, the basic law governing relations between labor unions and the employers whose operations influence interstate commerce

6 0
3 years ago
Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expa
vredina [299]

Answer:

2. in the short run, as aggregate demand increases, unemployment is reduced.

Explanation:

The government misjudging the natural rate of unemployment to be much lower than it actually is, and thus undertaking expansionary fiscal and monetary policies to try to achieve the lower rate. These policies might at first succeed because in the short run, as aggregate demand increases, unemployment is reduced due to the expansionary policies.

5 0
3 years ago
Read 2 more answers
A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the
Oxana [17]

Answer:

A. $50 increase

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The change in net cash provided by operation is shown below:

= Investment made - purchased goods on credit - paid amount

= $300 - $150 - $100

= $50

4 0
3 years ago
Which economist most supported the idea that poor workers would
Alla [95]
Thomas Robert Malthus is the economist who supported it the most
6 0
3 years ago
Read 2 more answers
The existence of different age groups within a company's target markets is referred to as
PolarNik [594]

Answer:

multigenerationalism.

Explanation:

Multigenerationalism is the term used to describe Marketing to different generations.

Only a few products will appeal to all age groups. A company will develop a variety of products to attract diverse age groups.  A Single product firm or one with few products may differentiate its goods or services to appeal to a wider target. Multigenerationalism exists when a business has different age groups in its target market.

5 0
3 years ago
Other questions:
  • Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par non-cum
    13·1 answer
  • In the context of strategic thinking, which of the following is a difference between for-profit organizations and nonprofit orga
    10·1 answer
  • Jerry is feeling very stressed because his boss expects a project to be delivered to the client within a very unreasonable deadl
    11·1 answer
  • Harding Company expected sales to be 50,000 units in February, 45,000 in March, and 55,000 units in April. Each unit sells for $
    13·1 answer
  • If Japan uses a certain amount of resources to produced cars, then it cannot use these sames resources to produce corn. The fore
    11·1 answer
  • Kickstarter is known as a(n) ___ website because it allows the general public to provide financial support to organizations and
    15·1 answer
  • A retirement plan guarantees to pay you or your estate a fixed amount for 20 years. At the time of​ retirement, you will have​ $
    12·1 answer
  • A(n) _____ is a problem-solving strategy that involves following a specific rule, procedure, or method that inevitably produces
    8·1 answer
  • If a conventional loan is at 16% and the VA loan is at 15%, the lender will want to charge how many points to increase the yield
    14·1 answer
  • What is the primary purpose of an issuer sponsoring an american depositary receipt (adr)?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!