Question a project will last for four years the initial, Ask an Expert

Finance

Question: A project will last for four years. The initial cash investment will be $240. The project will provide a net income of $80 for each of the four years. Depreciation will be on a straight-line basis over the four years, and there will be no salvage value. The required rate of return is 10 percent.

1. What will be the total net income over the life of the project?

2. What will be the average accounting return (in %)

3. What will be the operating cash flow (OCF) for all four years (not adjusted for time)?

4. What will be the net present value?

5. What will be the payback period (assume funds come in daily)?

6. What will be the discounted payback period?

7. What will be the profitability index?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93047058

Have any Question?Write your Review or question?

Related Questions in Basic Finance

A firm has sales of 613000 with costs of 521000 interest

A firm has sales of $613,000 with costs of $521,000. Interest expense is $26,000 and taxes is $16,500. What is the net income?

A 2-year treasury security currently earns 197 percent over

A 2-year Treasury security currently earns 1.97 percent. Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.60 percent per year. Calcula ...

What are some alternative methods that can help teach

What are some alternative methods that can help teach companies about the culture of where they want to do business before they make the move?

Common stock versus warrant investment tom baldwin can

Common stock versus warrant investment Tom Baldwin can invest $6,300 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $30 per share. Its warrants, which provide f ...

Cowcow a builder of phone accessories has no debt and an

COWCOW, a builder of phone accessories has no debt and an equity cost of capital of 13%. Suppose that COWCOW decides to increase its leverage to maintain a market debt-to-value ratio of 0.4. Suppose its debt cost of capi ...

What functional roles does marketing research play the

What functional roles does marketing research play the development of a marketing decision? Give an example of each role.

You observe following exchange rate quotations 1 is equal

You observe following exchange rate quotations: $1 is equal to 6.4568 Chinese yuan 1 Japanese yen equal to 0.0616 Chinese yuan. How many U.S. dollars will you need to purchase 1 billion Japanese yen?

Let us consider a 5 million position in silver in addition

Let us consider a $5 million position in silver. In addition, let us consider that the returns of gold are normally distributed (Gaussian) . The standard deviation of silver returns on a daily basis is 0.45%. How much ca ...

A stock price is currently 20 and at the end of 3 months it

A stock price is currently $20, and at the end of 3 months it will increase or decrease by 10%. The risk free rate is 5% per year (continuous compounding). Assume that ST is the price at the end of 3 months. what is the ...

Dia lucrii inc has 325000 shares of cumulative preferred

Dia Lucrii, Inc. has 325,000 shares of cumulative preferred stock outstanding. The stock is supposed to pay $2.18 in dividends per share each quarter. Due to an unexpected event, the company has missed the last two quart ...

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