Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Last Answer 1. Pay Period Table of Cash Flow 2. Answers needed With a 3-year cutoff period for recapturing the initial cash outflow, project

3. Last Answer

image text in transcribed

1. Pay Period

image text in transcribed

Table of Cash Flow

image text in transcribed

2. Answers needed

image text in transcribed

With a 3-year cutoff period for recapturing the initial cash outflow, project H would be (Select from the drop-down menu.) Payback period. What are the payback periods of projects E,F,G and H in the following table: ? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is 3 years, which projects do you accept? \begin{tabular}{|l|r|r|r|r|} \hline Cash flow & E & F & G & H \\ \hline Cost & $40,000 & $250,000 & $75,000 & $100,000 \\ \hline Cash flow year 1 & $10,000 & $40,000 & $20,000 & $30,000 \\ \hline Cash flow year 2 & $10,000 & $120,000 & $35,000 & $30,000 \\ \hline Cash flow year 3 & $10,000 & $200,000 & $40,000 & $30,000 \\ \hline Cash flow year 4 & $10,000 & $200,000 & $40,000 & $20,000 \\ \hline Cash flow year 5 & $10,000 & $200,000 & $35,000 & $10,000 \\ \hline Cash flow year 6 & $10,000 & $200,000 & $20,000 & $0 \\ \hline \end{tabular} What is the payback period for project E? years (Round to two decimal places.) With a 3-year cutoff period for recapturing the initial cash outflow, project E would be (Select from the drop-down menu.) What is the payback period for project F ? years (Round to two decimal places.) With a 3-year cutoff period for recapturing the initial cash outflow, project F would be (Select from the drop-down menu.) What is the payback period for project G? years (Round to two decimal places.) With a 3-year cutoff period for recapturing the initial cash outflow, project G would be (Select from the drop-down menu.) What is the payback period for project H ? years (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Management

Authors: James C Van Horne

3rd Edition

0133393410, 978-0133393415

More Books

Students also viewed these Finance questions

Question

Dont off er e-mail communication if you arent going to respond.

Answered: 1 week ago