Payback, Net present value, and depreciation tax shield 1)Calculate the payback for a project that costs $1,000 and
is expected to provide cash inflows of $400 per year for the next three years
If the required payback is 3 years, should the firm accept the project?
2)Calculate the net present value for a project that costs
$1,000 and is expected to provide cash inflows of $400 per year for the next
three years if the cost of capital is 10% Should the firm accept the
3)Calculate the depreciation tax shield for an asset that
costs $100,000 and is depreciated over 10 years using straight line
depreciation if the firm’s tax rate is 30%
4) You are at retirement age and one of your benefit options is to accept a monthly annuity of $6,900 for 20 years What lump sum settlement, if paid today, would have the same present value as the $6,900 monthly annuity? Assume a 5 percent discount rate
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.