Finace question on Payback, NPV, IRR etc
Some questions are as below
Problem 9-3 Calculating Payback [LO2]
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. |
Year | Cash Flow (A) |
| Cash Flow (B) | ||||
0 | –$ | 64,000 |
|
| –$ | 74,000 |
|
1 |
| 25,000 |
|
|
| 17,000 |
|
2 |
| 32,000 |
|
|
| 20,000 |
|
3 |
| 23,000 |
|
|
| 30,000 |
|
4 |
| 10,000 |
|
|
| 234,000 |
|
What is the payback period for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Payback period |
Project A | [removed]years |
Project B | [removed]years |
Which project should the company accept? | ||||
| ||||
|
Problem 9-4 Calculating Discounted Payback [LO3]
An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, and a discount rate of 15 percent. |
What is the discounted payback period for these cash flows if the initial cost is $6,300? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Discounted payback period | [removed]years |
What is the discounted payback period for these cash flows if the initial cost is $8,400? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Discounted payback period | [removed]years |
What is the discounted payback period for these cash flows if the initial cost is $11,400? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Discounted payback period | [removed]years |
13 years ago
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- problems_6_4nov.pdf