Multiple Choice QuestionA company is considering two capital investments. Each requires an initial investment of $15,000 and has a 4 year useful life. Investment A has expected cash inflows of $5,000 each year for the 4 years for total cash inflows of $20,000. Investment B has the following expected cash flows: Year 1: $8,000; Year 2: $6,000; Year 3: $4,000; Year 4: $2,000; Total cash flows: $20,000. Calculate the payback period for Investment B.Multiple choice question.Cannot be determined from information given.4 years3 years2.25 years

Multiple Choice QuestionA company is considering two projects. Project 1 has an initial investment of $60,000 and expected cash inflows of $20,000 each year for 5 years. Project 2 has an initial investment of $80,000 and expected cash inflows of $20,000 each year for 10 years. Using the payback period as the evaluation method, which investment should be chosen by management?Multiple choice question.Project 2 with total cash inflows of $200,000Project 1 with payback period of 3 yearsProject 2 with payback period of 4 yearsProject 1 with total cash inflows of $100,000

The expected cash flows of three projects are given below. The cost of capital is 10 per cent. (Amount in INR.)Period   Project A Project B   Project C 0 ( 5000) ( 5000) ( 5000)1 900 700 2,0002 900 800 2,0003 900 900 2,0004 900 1000 1,0005 900 1100  6 900 1200  7 900 1300  8 900 1400  9 900 1500  10 900 1600  * CALCULATE the payback period, net present value, internal rate of return and accounting rate of return of each project.*IDENTIFY the rankings of the projects by each of the four methods. Based on the calculations, choose the correct answers of  the below mentioned questions.What is the payback period (years) of Project A, B & Ca.4, 5, 6 Yearsb.5.5, 5.4, 2.5 yearsc.5.6, 5.7, 3.5 Yearsd.4.5, 4.9. 2.5 YearsClear my choice

Fill in the Blank QuestionFill in the blank question.A company is considering a capital investment of $16,000 in new equipment which will improve production and increase cash flows for the next five years at the following amounts: Year 1: $8,000; Year 2: $6,000; Year 3: $5,000; Year 4: $6,000; Year 5: $5,000. The payback period is years.

What is the payback period for the following set of cash flows?  Year Cash Flow0 −$ 4,200       1 1,300       2 1,400       3 1,900       4 2,800         Multiple Choice2.81 years2.93 years2.74 years2.79 years3.09 years

An investment project costs $12,900 and has annual cash flows of $3,500 for six years.  a. What is the discounted payback period if the discount rate is zero percent?   b. What is the discounted payback period if the discount rate is 6 percent?   c. What is the discounted payback period if the discount rate is 22 percent?