"Compute the payback period for a project with the following cash flows if the company s discount rate is 12 initial outlay 450" Essays and Research Papers

Sort By:
Satisfactory Essays
Good Essays
Better Essays
Powerful Essays
Best Essays
Page 1 of 50 - About 500 Essays
  • Powerful Essays

    bond offers a 4% coupon rate‚ paid semiannually. The market price of the bond is $1‚000‚ equal to its par value. a. What is the payback period for this bond? b. With such a long payback period‚ is the bond a bad investment? c. What is the discounted payback period for the bond assuming its 4% coupon rate is the required return? What general principle does this example illustrate regarding a project’s life‚ its discounted payback period‚ and its NPV? A8-1. a. Payback on this bond is 25 years

    Premium Net present value

    • 755 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Payback Period

    • 716 Words
    • 3 Pages

    Payback Period Payback periods are commonly used to evaluate proposed investments. The payback period is the amount of time required for the firm to recover its initial investment in a project‚ as calculated from cash inflows. In the case of an annuity‚ the payback period can be found by dividing the initial investment by the annual cash inflow. For a mixed stream of cash inflows‚ the yearly cash inflows must be accumulated until the initial investment is recovered. Although popular‚ the payback

    Premium Net present value Investment

    • 716 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Cash Flow and Company

    • 3601 Words
    • 15 Pages

    the Wendy’s corporation. It highlights many of the company’s financial ratios and other calculations used to measure the success of a company. The Wendy’s Company is the #2 hamburger chain in the United States following #1 McDonalds (Hoovers). The Wendy’s Company (NASDAQ:WEN) is the world’s third largest quick-service hamburger company (Wendy’s.com). The company consists of almost 6‚500 restaurants in the U.S. and almost 25 in other countries (Hoovers). The first Wendy’s restaurant was opened

    Premium Cash flow Generally Accepted Accounting Principles Financial ratios

    • 3601 Words
    • 15 Pages
    Good Essays
  • Good Essays

    weaknesses of the Cash Payback Period‚ Discounted Cash Payback Period‚ NPV‚ IRR and MIRR capital expenditure budgeting methods. Prepare a recommendation for Stewart regarding the capital budgeting method or methods to use in evaluating the expansion alternatives. Support your answer. Capital budgeting techniques such as payback period‚ net present value (NPV)‚ internal rate of return (IRR) and modified internal rate of return (MIRR) all offer particular strengths and weaknesses. The payback period is the simplest

    Premium Net present value Capital budgeting Internal rate of return

    • 988 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Cash Flow and Growth Rate

    • 1802 Words
    • 8 Pages

    Hon Chan 22002960 Introduction An initial public offering (IPO) refers to the initial stage of shares offering to the public market for subscriptions by a company to raise capital for the purpose of expansion. It is considered as a big issue for companies as an IPO does not necessary guarantee the success of a company as it is merely a tool of raising capital while its costs of issuance and consecutive monitoring costs (due to diluted shareholdings of the company by public investors) are relatively

    Premium Cash flow Time value of money Net present value

    • 1802 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Cash Discount

    • 399 Words
    • 2 Pages

    Cash Discount on Sales Cash discount is the discount offered by seller for paying cash early. Cash discount is only offered on credit sales where the customers do not pay at the time of sale but promise to pay latter. There are two methods of accounting for sales that offer cash discounts; the gross method and the net method. These two methods are explained with the help of the following example: Example Suppose Company A sells certain goods at a price of $4‚400 with terms of payment

    Premium Sales Discounts and allowances Customer service

    • 399 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Discount Rate

    • 498 Words
    • 2 Pages

    The discount rate Main article: Discount rate The rate used to discount future cash flows to their present values is a key variable of this process. A firm’s weighted average cost of capital (after tax) is often used‚ but many people believe that it is appropriate to use higher discount rates to adjust for risk or other factors. A variable discount rate with higher rates applied to cash flows occurring further along the time span might be used to reflect the yield curve premium for long-term

    Premium Net present value Investment

    • 498 Words
    • 2 Pages
    Good Essays
  • Good Essays

    time series of cash flows. It is a standard method for using the time value of moneyto appraise long-term projects. Used for capital budgeting‚ and widely throughout economics‚ it measures the excess or shortfall of cash flows‚ in present value terms‚ once financing charges are met. The advantages of the NPV are following; first‚ it tells whether the investment will increase the firm’s value. Also‚ it considers all the cash flows‚ time value of money and the risk of future cash flows through the cost

    Premium Net present value

    • 972 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Cash Flows

    • 380 Words
    • 2 Pages

    Assignment: Cash Flow Preparation JoBeth Murphy University Of Phoenix June 12‚ 2010 Complete problems 19‚ 21‚ & 27 on pp. 50 – 53 of Foundations of Financial Management. Identify whether each of the following items increases or decreases cash flow: * Increase in accounts receivable - decrease * Increase in notes payable - decreases * Depreciation expense - increases * Increase in investments - decreases * Decrease in accounts payable - decrease * Decrease

    Premium Generally Accepted Accounting Principles Cash flow statement Depreciation

    • 380 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Discounted Cash Flow

    • 4436 Words
    • 18 Pages

    discounted cash flow (DCF In finance‚ discounted cash flow (DCF) analysis is a method of valuing a projectcompany‚ or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs) — the sum of all future cash flows‚ both incoming and outgoing‚ is the net present value (NPV)‚ which is taken as the value or price of the cash flows in question. Using DCF analysis to compute the NPV takes as input cash flows and a discount rate

    Premium Generally Accepted Accounting Principles Investment Balance sheet

    • 4436 Words
    • 18 Pages
    Good Essays
Previous
Page 1 2 3 4 5 6 7 8 9 50