Finace question on Payback, NPV, IRR etc

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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?

 

[removed]

Project A

[removed]

Project B

 

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
    Finance assignment - Discounted Payback, NPV, IRR etc
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