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Homework answers / question archive / question1 A company is considering a project that would require an intial cash outflow in the amount of $225,000 at the beginning of project (i
question1 A company is considering a project that would require an intial cash outflow in the amount of $225,000 at the beginning of project (i.e. t=0). The project has an expected cash inflow in the amount of $40,000 at the end of the first year. The company requires a 13% return on investment. If you were computing the discounted paypack period for the project, what amount would you subtract from the initial cost of $225,000 to find the amount of the intial cost remaining to be recovered at the end of the first year of the project on a discounted basis?
Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.
question2 Assume a project with an intial cash outlay of $100,000 has a NPV of $8,000. What is the profitability index for this project?
Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas in your response. For example, an answer of 1,000.50 should be entered as 1000.50.
question3 A company is considering a project with an initial capital outlay of $100,000. The project is expected to have average annual net income of $5,750, average annual cash flow of $30,000, and an average book value of $50,000. The company requires a 11% return on investment. What is the average accounting return for this project?
Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit the % sign in your response. For example, an answer of 15.39% should be entered as 15.39.
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