Localfund.com - All about Fund and Investment
*Home>>>Investment Company

The company is considering an investment that costs $430,000 today and will provide $72,000 each year in net c


The company is considering an investment that costs $430,000 today and will provide $72,000 each year in net cash inflow, but the company is not sure how long the investment will last.
The company has a discount rate of 10%. Compute the number of years of useful life required for this investment to break even.

set pmt once a year
i= 10
pv= - 430,000
pmt = 72,000

search for n

put this question in the homework section and/or do learn something by doing it yourself

9.54 years. Now go do it yourself and check your answer with mine.

Your payback period is 5.97 years ignoring the discount rate. You would need a little less than 9 years if discounted.

Tags
  Investment Management   Investment Information   Investment Group   Investment Firms   Investment Company   Investment Calculator   Investment Bank   Investment Advice   Investment Account
Related information
  • What degree should i get if i want to be a investor working for an investment company?

    Start out with a 4 year Finance Degree. FYI... You don't need a degree to be a stock broker, but remember a stock broker is just a salesman. He is told what to sell to his clients. He doesn...

  • How does someone buy into a mutual fund without going through a broker or investment company?

    Many mutual funds will sell directly to Shareholders. - All you have to go is to their web sites. In addition, many brokers such as Charles Schwab and Company have a mutual fund market place w...

  • Light.investment a real company?

    Invest in JESUS AND THE LORD

    ...
  • If a company uses payback rule as investment what is the risk it faces and why?

    THE PAYBACK RULE A. Defining the Rule Payback period鈥攖he expected number of years required to recover the original investment. Payback period = Years before full recovery + unrecovered cost at...

  • How do u start and open a realestate investment LLC COMPANY?

    First you'll need a real estate license. Then you can go to legalzoom .com or hire an attorney to form your L.L.C. You will also have to keep books separate from your personal. Plus a second b...

  • Please explain application of IRR &NPV in share investment given company's prospectus in a public offer?

    IRR refers to the Internal Rate of Return. This is used to calculate the profitablility of a venture in both the short and long term. NPV or Net Present Value is the current value of an investm...

  • How to choose right company for investment of money in share market?

    It depends on a million things. You need to start by researching the company. Remember, when you invest your money in a company, you become a part owner in that company. You'll need to kn...

  • What is a good name for an investment holding company?

    Hand-

    ...
  •  

    Categories--Copyright/IP Policy--Contact Webmaster