Solved: Gas station a is paid back in 2 years cf1 in year 1 and cf2, Finance Basics

+44 141 628 6080
[email protected]

Gas station a is paid back in 2 years cf1 in year 1 and cf2

The folloiwng information is supplied in the assignment

Payback Period: Gas Station A is paid back in 2 years; CF1 in year 1, and CF2 in year 2. Gas Station B is paid back in one (1) year. According to the payback period, when given the choice between two mutually exclusive projects, the investment paid back in the shortest time is selected. Remember - the fastest is always the best
Net Present Value: Consider the gas station example above under the NPV method, and a discount rate of 10%:
NPV_{gas station A} = $32,644
NPV_{gas station B} = $16,115 Differentiate between the possibility of completing one or both projects based on their NPV
Internal Rate of Return: for Station A is 41.421%.; for Station B, 36.602.

View Complete Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Gas station a is paid back in 2 years cf1 in year 1 and cf2

Reference No:- TGS02705618

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : How much does a basis point equal how many basis points are

how much does a basis point equal how many basis points are there between six- and five-eighths percent and six- and

Q : What was net income for the most recent four quarterswhat

you have found the following stock quote for rjw enterprises inc in the financial pages of todays

Q : You are in a 30 tax bracket and will be able to sell the

you have purchased a machine for 120000 and are depreciating it using a three-year macrs schedule you are in a 30 tax

Q : She has 100000 to invest and because all the bonds are

maria lopez is a wealthy investor whos looking for a shelter maria is in the maximum 35 federal tax bracket and lives

Q : Gas station a is paid back in 2 years cf1 in year 1 and cf2

the folloiwngnbspinformation is supplied in the assignmentpayback periodnbspgas station a is paid back in 2 years cf1

Q : If shares in a similar company have an average return of 14

company will pay constant dividend of 200 for 10 years dividends will then grow 10 per year if shares in a similar

Q : What would the result be if mattel chose to remain unhedged

1 what would the result be if mattel chose to remain unhedged show how you arrived at your answer with numbers is this

Q : Ferris company began 2018 with 4000 units of its principal

ferris company began 2018 with 4000 units of its principal product the cost of each unit is 7 merchandise transactions

Q : You are the ethics compliance officer at the bank of brexit

you are the ethics compliance officer at the bank of brexit the wizards in the financial products marketing division

1942539

Questions
Asked

3,689

Active Tutors

1457855

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Salesforce to perform sales-generating activities

Using a field salesforce to perform sales-generating activities and a telemarketing salesforce to perform account servicing activities

Enable proactive chat on a website

Question: You need to enable proactive chat on a website. From which location do you need to enable it?

Why marketing focuses primarily on generating sales-profits

While marketing focuses primarily on generating sales and profits, public relations serves the public interest in developing newsworthy content

Consequence of marketers triggering problem recognition

A consequence of marketers triggering problem recognition in consumers before an issue turns into a problem is that Multiple choice question.

What is the market share that bureau en gros would need

What is the market share that Bureau en Gros would need to achieve to break even on Sharpie Fine Point markers?

Make an interview to an individual that shops online regular

Hi, in a course for my MBA one of my assignments was to make an interview to an individual that shops online regularly.

Brand-loyal customers and brand-preference customers

Question: What is the difference between brand-loyal customers and brand-preference customers?