A project has the following cash flows. What is the payback period? Year 0 1 2...

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Finance

A project has the following cash flows. What is the paybackperiod? Year 0 1 2 3 4 cash flow -$14500 $2200 $4800 $6500 $7500
A project has the following cash flows. What is the internalrate of return? Year 0 1 2 3 Cash flows -$89300 $32900 $64200$5800
A project has the following cash flows. What is the paybackperiod? Year 0 1 2 3 4 Cash flow -$28000 $11600 $11600 $6500$6500
And how to solve this kind of problems with a financialcalculator? (BA II)

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4.1 Ratings (845 Votes)

Payback period= full years until recovery + unrecovered cost at the start of the year/cash flow during the year

1.Payback period= 3 years + $1,000/ $7,500

= 3 years + 0.13

= 3.13 years.

2. Payback period= 1 year + $56,400/ $64,200

= 1 year + 0.88

= 1.88 years.

3.Payback period= 2 years + $4,800/ $6,500

= 2 years + 0.74

= 2.74 years.

In case of any query, kindly comment on the solution.

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Transcribed Image Text

A project has the following cash flows. What is the paybackperiod? Year 0 1 2 3 4 cash flow -$14500 $2200 $4800 $6500 $7500A project has the following cash flows. What is the internalrate of return? Year 0 1 2 3 Cash flows -$89300 $32900 $64200$5800A project has the following cash flows. What is the paybackperiod? Year 0 1 2 3 4 Cash flow -$28000 $11600 $11600 $6500$6500And how to solve this kind of problems with a financialcalculator? (BA II)