Business, 24.03.2020 02:35, ronnie7898
Your firm has the opportunity to invest $90,000 in a new project opportunity but due to cash flow concerns, your boss wants to know when you can pay back the original investment. Using the discounted payback method, you determine that the project should generate inflows of $30,000, $35,000, $30,000, $25,000, and $20,000 respectively for an expected five years after completion of the project. Your firm's required rate of return (ror) is 10%. Calculate how long it should take to pay back the initial project investment. [Hint: List your all cash flow by year, investment can be seen as happening in year zero, calculate the NPV of inflow using Discount factor = 1/(1 + ror)^t, find the nearest break-even year using accumulated cash flow, then find the decimal point assuming cash flow are evenly distributed within a year]
Answers: 2
Business, 21.06.2019 22:50, jonlandis6
Synovec co. is growing quickly. dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. if the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
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Interest is credited to a fixed annuity no lower than the variable contract rate contract guaranteed rate current rate of inflation prime rate
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Business, 22.06.2019 10:40, charlesrogers38
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Your firm has the opportunity to invest $90,000 in a new project opportunity but due to cash flow co...
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