What is the payback period of the project, Accounting Basics

+44 141 628 6080
[email protected]

What is the payback period of the project

Nowadays Manufacturing is considering an investment proposal with the following information:

Cost $450,000

Useful life 6 years (straight-line depreciation)

Annual Cash inflows $100,000 (estimated per year for 8 years)

Residual value $ 20,000

Required rate of return 10%

Answer the following questions concerning this proposal. Show your work.

a. What is the payback period of this project?

b. What is the NPV of this project?

c. Is the IRR greater or less than 10%? Explain your answer

d. Should the project be accepted based on your NPV analysis? Why or why not?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the payback period of the project

Reference No:- TGS0556571

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Complete the amortization table for first three loan payment

On September 1, Sheehan Inc. signed a 5.5% mortgage (installment) note for $340,000. The monthly payment of $2,000 is due on the last day of each month.

Q : An examination of the accounting records

An examination of the accounting records of Clowney Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, suggest a likely means of improving income from operations. Explain

Q : Determine stated interest rate and effective-interest rate

The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2008, and the subsequent interest payments and charges.

Q : Explanation by reference to the major reconciling items

Explain how Campbell Soup Company can have net income of $401.5 million , but generate $805.2 million in cash from operations in Year 11. Illustrate our explanation by reference to the major reconciling items.

Q : What is the payback period of the project

Nowadays Manufacturing is considering an investment proposal with the following information: Should the project be accepted based on your NPV analysis? Why or why not?

Q : What is jackson''s deduction

Jackson uses his automobile 90% for business and during 2012 drove a total of 14,000 miles. Information regarding his car expenses is listed below.

Q : What is the dollar amount of dividends

Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year?

Q : The proportion between variable and fixed cost of goods

Compute the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.)

Q : Would company more or less likely to accept project today

If a company has an option to abandon a project, would this tend to make the company more or less likely to accept the project today?

1950417

Questions
Asked

3,689

Active Tutors

1460296

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the payback period of the project

Reference No:- TGS0556571

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Complete the amortization table for first three loan payment

Q : An examination of the accounting records

Q : Determine stated interest rate and effective-interest rate

Q : Explanation by reference to the major reconciling items

Q : What is the payback period of the project

Q : What is jackson''s deduction

Q : What is the dollar amount of dividends

Q : The proportion between variable and fixed cost of goods

Q : Would company more or less likely to accept project today

Medication for postoperative nausea and vomiting

Child prescribed prednisone for exacerbation of asthma

What if a parent of hispanc origin informs nurse of plans

How health care reimbursement is delivered

How to improve overall health of elementary school children

How would you instruct the patient to taper off clonazepam

How to prevent interference with an intravenous infusion

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the payback period of the project

Reference No:- TGS0556571

Recent Questions Asked Accounting Basics

Q : Complete the amortization table for first three loan payment

Q : An examination of the accounting records

Q : Determine stated interest rate and effective-interest rate

Q : Explanation by reference to the major reconciling items

Q : What is the payback period of the project

Q : What is jackson''s deduction

Q : What is the dollar amount of dividends

Q : The proportion between variable and fixed cost of goods

Q : Would company more or less likely to accept project today

Asked Questions