Problemamp inc has invested 2165800 on equipment the firms, Ask an Expert

Finance

Problem:

AMP Inc. has invested $2,165,800 on equipment. The firms uses payback criteria of not accepting any project that takes on more than four years to recover costs. The company anticipates cash flows of $436,386, $512,178, $564,755, $764,997, $816,500, and $825,375 over the next 6 years.

Required:

Question: What is the payback period?

Note: Please show how to work it out.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162332

Have any Question?Write your Review or question?

Related Questions in Basic Finance

What are some best practice principles to remember for

What are some best practice principles to remember for estimating a corporate cost of capital?

Discuss the core business objectives and the primary focus

Discuss the core business objectives and the primary focus of the financial business model.

Your company is considering a new project that will require

Your Company is considering a new project that will require $950,000 of new equipment at the start of the project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of $297,500 ...

In capital budgeting for a multinational company the

In capital budgeting for a multinational company, the starting discount rate to which risks stemming from foreign exchange and political factors can be added, and from which benefits reflecting the parent's lower capital ...

An executor may value assets as of the date of death or the

An executor may value assets as of the date of death or the alternate valuation date 6 months after death. Assuming the estate is eligible to elect, and the executor elects, the alternate valuation date, which of the fol ...

What is the difference between promotion and

What is the difference between Promotion and Advertising?

Question - netphone inc expects the following ucfbt 1

Question - Netphone Inc. expects the following: UCFBT= $1 million in perpetuity from the beginning of year 3 there is no income prior to that. Ignore loss carryovers for taxes. Tax rate is 50%, amount of debt = 0 Rzero= ...

A firm is considering the two mutually exclusive

A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $ ...

Sweatt strengths weaknesses excellence action threats and

SWEATT (Strengths, Weaknesses, Excellence, Action, Threats and Team) This model was developed by Dr. Russel Robertson to effectively implement culture change in an organization. How can the SWEATT model help organization ...

Questions -q1 techno stock was 25 per share at the end of

Questions - Q1: TechNo stock was $25 per share at the end of last year. Since then, it paid a $1.50 per share dividend last year. The stock price is currently $23. If you owned 300 shares of TechNo, what was your percent ...

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 Basic Finance Expert