Highfield co is considering a project that will require an, Ask an Expert

Finance

Highfield Co. is considering a project that will require an initial cash outlay of $78,120 today. The project has a five-year life and will generate cash flows of $20,608 every year for next five years. The required rate of return is 15%. What is the payback period? a. 4.6218 b. 2.8706 c. 3.9349 d. 3.7908

B. Given the information in Question 1, what is the net present value? a. $9,038.79 b. -$9,038.79 c. $3,790.80 d. $7,812.03

C. Given the information in Question 1, what is the internal rate of return? a. 10% b. 8% c. 6% d. 12%

D. Given the information in Question 1, what is the profitability index? a. 1.8843 b. -0.8843 c. 0.8843 d. -1.8843

E. Given the information in Question 1, what is the maximum price that Highfield has to pay if the target profitability index is 1.2? a. $65,248.13 b. $82,098.45 c. $78,120 d. $57,567.68

F. Given the information in Question 1, what is the minimum annual cash flow that project has to generate in order to accept the project? a. $20,608 b. $23,304.41 c. $22,403.52 d. $19,376.93

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M91790138

Have any Question?Write your Review or question?

Related Questions in Financial Management

Lets end the capstone course with the followingthroughout

Let's end the capstone course with the following: Throughout the course, we've applied the Four Frames to the University of Missouri (A) case. Recognizing that all four frames are useful as a lens for evaluating organiza ...

Please respond to the followingnbsp under 300 wordsa

Please respond to the following: UNDER 300 Words a) Justify why a small investor would benefit from investing in a mutual fund, as compared to the many other investments that exist. Provide support for your justificatio ...

Management control systems and national cultures and

Management Control Systems and National Cultures and Corporate Social Responsibility o What steps, if any, is Amazon taking to be sensitive to the national culture. o What is Amazon doing with regard to Corporate Social ...

Write a 700-word report in which you address the

Write a 700-word report in which you address the following: Define and explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Include at least ...

Reflection papernbsp instructionsas you continue on your

Reflection Paper : Instructions As you continue on your quest for academic success, it is important to share your knowledge with others. In fact, you have been asked to provide advice to future students on academic inte ...

Answer each question in 75 words a piece use references if

Answer EACH question in 75 words A PIECE. Use references, if needed and cite. 1. Embark on a virtual field trip. Researching online, explore different career fields that interest you. Share with your classmates which car ...

As you have read and researched web analytics is used

As you have read and researched, web analytics is used extensively in higher education. Continue to research and source at least 5 different ways how web analytics is used by higher education institutions. You must provi ...

Assignmentassignment purposes1 evaluate the characteristics

Assignment Assignment Purposes: 1. Evaluate the characteristics of e-commerce. 2. Demonstrate effective use of technology for communication. 3. Evaluate the effectiveness of an e-commerce Web site. 4. Explain the securit ...

Discuss the following questions professional or trade

Discuss the following Questions : Professional or trade organizations can provide ethical guidelines for business or professionals within their selected organization. Research a professional or trade organization. Provid ...

Question 1 discuss how your organizations overall business

Question : 1) Discuss how your organization's overall business strategy and human resources planning affect one another. 2) Discuss an example of a company engaging in poor ethics and/or social responsibility. What were ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert