Year Cash Flows__ 0 ($850,000,000) 1 170,000,000 2 190,000,000 3 205,000,000 4 265,000,000 5 235,000,000 6...
| Year | Cash Flows__ |
| 0 | ($850,000,000) |
| 1 | 170,000,000 |
| 2 | 190,000,000 |
| 3 | 205,000,000 |
| 4 | 265,000,000 |
| 5 | 235,000,000 |
| 6 | 170,000,000 |
| 7 | 160,000,000 |
| 8 | 105,000,000 |
| 9 -75,000,000 | -75,000,000 |
| The firm has 12% required return on its projects. |
3. Excel does not have a built-in formula to calculate the payback period. Write a script that calculates the payback period. (Use the “If” statement.)
Homework Answers
Payback Period for the Project
|
Year |
Annual cash flow ($) |
Cumulative net cash flow ($) |
|
0 |
-85,00,00,000 |
-85,00,00,000 |
|
1 |
17,00,00,000 |
-68,00,00,000 |
|
2 |
19,00,00,000 |
-49,00,00,000 |
|
3 |
20,50,00,000 |
-28,50,00,000 |
|
4 |
26,50,00,000 |
-2,00,00,000 |
|
5 |
23,50,00,000 |
21,50,00,000 |
|
6 |
17,00,00,000 |
38,50,00,000 |
|
7 |
16,00,00,000 |
54,50,00,000 |
|
8 |
10,50,00,000 |
65,00,00,000 |
|
9 |
-7,50,00,000 |
57,50,00,000 |
Payback Period = Years before full recover + (Unrecovered cash inflow at start of the year/cash flow during the year)
= 4.00 Years + ($2,00,00,000 / $23,50,00,000)
= 4.00 Years + 0.09 Years
= 4.09 Years
“Hence, the Payback Period for the Project will be 4.09 Years”
Add Answer to:
Year
Cash Flows__
0
($850,000,000)
1
170,000,000
2
190,000,000
3
205,000,000
4
265,000,000
5
235,000,000
6...
please answer the question marked page 2 on the first sheet usuinh the information, not the...
please answer the question marked page 2 on the first sheet
usuinh the information, not the questions, provided in the past
sheet.
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i just need questions 2 and 3
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please answer the question marked page 2 on the first sheet
usuinh the information, not the questions, provided in the past
sheet.
SPECIFIC INPUT: Page 1: Use Investment, cash-flows and discount rate as presented in the Chapter 9. Prepare the following: 1. Payback analysis 2. NPV analysis 3. IRR analysis Page 2: A. Change the cash-flows as follows: Investment $ 600,000,000 Year 5 $ 195,000,000 Year 1 $ 79,000,000 Year 6 $ 145,000,000 Year 2 $ 95,000,000 Year 7 $135,000,000...
i just need questions 2 and 3
MINICASE lock Gold Mining he owner of Bullock Gold Mining, is evaluat- d mine in South Dakota. Dan Dority, the com- has just finished his analysis of the mine rimated that the mine would be productive for fter which the gold would be completely mined. an estimate of the gold deposits to Alma Gar- many's financial officer. Alma has been asked by rm an analysis of the new mine and present her dation...
use
11% for the interst rate and reinvestment rate
MINICASE Bullock Gold Mining Seth Bullock, the own in a new gold mine in Year WN O eck the owner of Bullock Gold Mining, is evaluat cold mine in South Dakota. Dan Dority, the com- cologist, has just finished his analysis of the mine He has estimated that the mine would be productive for mit vears, after which the gold would be completely mined. Dan has taken an estimate of the...
I only need help with 1 and 2 please :)
Chapter 9 Net Present MINICASE Year Bullock Gold Mining Sch Bullock, the owner of Bullock Gold Mining, is evaluat- ing a new gold mine in South Dakota. Dan Dority, the com- pany's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold...
The cash flows associated with three independent projects (in millions) are as follows Net Cash Flows Proiect Alpha Project Beta Proiect Gamma Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $1,500,000 $300,000 S500,000 S500,000 $400,000 $300,000 $400,000 $100,000 S200,000 $200,000 $100,000 S200,000 $7,500,000 $2,000,000 S3,000,000 S2,000,000 S1,500,000 $5,500,000 a) Calculate the payback period of each investment b) Which investments does the company accept if the cut-off payback period is three years? What if the cut-off is...
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