A dry-bean harvester requires an initial cash outlay of $250,000. The after-tax net cash flows from...
A dry-bean harvester requires an initial cash outlay of $250,000. The after-tax net cash flows from this harvester will be $60,000 during the first year; $50,000 for each of the second, third, and fourth years; and $30,000 for the fifth, sixth, seventh, and eight years. In year eight, the harvester can be sold for an after-tax salvage value of $40,000. Calculate the payback period by using the following table.
|
Year |
Annual net cash flows |
Cumulative Net Cash Flows |
|
1 |
||
|
2 |
||
|
3 |
||
|
4 |
||
|
5 |
||
|
6 |
||
|
7 |
||
|
8 |
Homework Answers
Pay back period = 5+(10000/30000)= 5.33
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A dry-bean harvester requires an initial cash outlay of
$250,000. The after-tax net cash flows from...
A dry-bean harvester requires an initial cash outlay of $350,000. The after-tax net cash flows from...
A dry-bean harvester requires an initial cash outlay of $350,000. The after-tax net cash flows from this harvester will be $80,000 during the first year: $50,000 for each of the second, third, and fourth years; and $45,000 for the fifth, sixth, seventh, and eight years. In year eight, the harvester can be sold for an after-tax salvage value of $150,000. What is payback period? 8 years 7 years 6 years 5 years 4 years 3 years 2 years 1 year
Hogwarts Inc. is considering a project with the following cash flows: Initial cash outlay = $2,500,000 After–tax net ope...
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A dry-bean harvester requires an initial cash outlay of $350,000. The after-tax net cash flows from this harvester will be $80,000 during the first year: $50,000 for each of the second, third, and fourth years; and $45,000 for the fifth, sixth, seventh, and eight years. In year eight, the harvester can be sold for an after-tax salvage value of $150,000. What is payback period? 8 years 7 years 6 years 5 years 4 years 3 years 2 years 1 year
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