Question
1. Sanders Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$50,000 1 $10,659 2 $15,437 3 $45,103 4 $75,074
1.
Sanders Inc., is considering a project with the following cash flows.
| Year | Cash Flows |
| 0 | -$50,000 |
| 1 | $10,659 |
| 2 | $15,437 |
| 3 | $45,103 |
| 4 | $75,074 |
| 5 | $250,682 |
What is the regular payback period for this project?
[Enter the final answer in as a decimal (e.g. 5.55) - not a percent]
2.
Sanders Inc., is considering a project with the following cash flows.
| Year | Cash Flows |
| 0 | -$50,000 |
| 1 | $10,988 |
| 2 | $15,644 |
| 3 | $20,216 |
| 4 | $40,031 |
| 5 | $133,490 |
What is the discounted payback period for this project if the appropriate discount rate is 7 percent?
[Enter the final answer in as a decimal (e.g. 5.55) - not a percent]
3.
Davis Inc., is considering a project with the following cash flows.
| Year | Cash Flows |
| 0 | -$81,258 |
| 1 | $14,962 |
| 2 | $17,000 |
| 3 | $23,272 |
| 4 | $28,247 |
| 5 | $32,372 |
What is the net present value (NPV) for this project if the appropriate discount rate is 7 percent?
[Round the final answer to the nearest cent]
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
