A project requires a $560,000 initial investment for new machinery. The project is expected to yield income of $40,000 per year and net cash flows of $140,000 per year for the next five years. The project has a payback period of 4.0 years. Group startsTrue or False True, selected False, unselected

Question

06-05-2022
Business

Answered

Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

A project requires a $560,000 initial investment for new machinery. The project is expected to yield income of $40,000 per year and net cash flows of $140,000 per year for the next five years. The project has a payback period of 4.0 years. Group startsTrue or False True, selected False, unselected

Sagot :

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.

What is the relationship between acceleration and time a(t) for the model rocket (v(t)=αt3 βt γ, where α=−3. 0m/s4, β=36m/s2, and γ=1. 0m/s)?

What would be most helpful in organizing information before drafting an informative essay?

If a spaceship approaches you at 0. 5c, and a light on the spaceship is turned on pointing in your direction, how fast will the light be traveling when it reach

You are forecasting a stock to pay the following dividends: $4.40 , $3.45 , $4. The dividends will then begin declining at a rate of 5.0% for the foreseeable fu

What is the speed of light in crown glass if the index of refraction for crown glass is 1. 52? provide the solution: ___________ x 108 m/s

what happens when a pod in namespace com tries to hit hostname

The length of a rectangle is 3 m longer than its width. If the perimeter of the rectangle is 34 m, find its area.

For the reaction ag2s(s) ⇌ 2ag (aq) + s2−(aq). What happens to the equilibrium position if the amount of silver ion is halved?

A light bulb operating at 110 v draws 1. 40 a of current. what is its resistance?

Emma bought snacks for her team's practice. She bought a bag of chips for $2.27 and a 24-pack of juice bottles. The total cost before tax was $51.23. Write and

divyamadaan8054 divyamadaan8054 · Answer 1 · 2022-05-14T03:22:12-04:00

It is True. According to the statement, the project has a payback period of 4.0 years.

What do you mean by Payback period method?

Payback period is the time period it takes for an investment to cover its initial investment in the form of future cash flows.

If we discount back the cash flows, it will result in lowering its value. As the denominator in a equation decreases the value of result increase.

Here, Payback period method is calculated by dividing the net cash flows from the initial investment and $560,000/ $140,000=4.0.

Therefore, it is True.

Learn more about payback period, refer to the link:

https://brainly.com/question/17191167

#SPJ1

A project requires a $560,000 initial investment for new machinery. The project is expected to yield income of $40,000 per year and net cash flows of $140,000 per year for the next five years. The project has a payback period of 4.0 years. Group startsTrue or False True, selected False, unselected

Sagot :

What do you mean by Payback period method?

Other Questions