FIN 341 Quiz#6 Based on Exercise#6

Due Date 3-03-15 Tuesday-Midnight

1.

II = $240,000 year 1 to 5 cash flow $80,000,

$80,000, $80,000, $80,000, and $80,000. Calculate
the years payback.

$80,000(CF1) + $80,000(CF2) + $80,000(CF3)

or $ 240000= II
Thus Payback is 3 years.
2.

II = $500,000 year 1 to 6 cash flow is $120,000,

$140,000, $180,000, $200,000, $240,000 and
$280,000. Calculate the years payback.

$120,000(CF1) + $140,000(CF2) + $180,000(CF3) +

$(60000/200000) (CF4)
Thus Payback is 3.3 years.
3.

II = $750,000 year 1 to 4 cash flow is $300,000,

$340,000, $380,000, and $400,000. Calculate the
years payback.

$300,000(CF1) + $340,000(CF2) + $(110,000/380000)

(CF3)
Thus Payback is 2.29 years.
4.

II = $600,000 year 1 to 5 cash flow is $160,000,

$200,000, $240,000, $280,000, and $320,000.

Calculate the years payback.
$160,000(CF1) + $200,000(CF2) + $240,000(CF3) or
$ 600000= II
Thus Payback is 3 years.
5. II = $1,200,000 year 1 to 4 cash flow is $380,000,
$500,000,
$600,000, and $740,000. Calculate the years
payback.
$380,000(CF1) + $500,000(CF2) + $(320000/600,000)
(CF3)
Thus Payback is 2.533 years.
6. II = $1,500,000 year 1 to 5 cash flow is $380,000,
$440,000,
$480,000, $600,000, and $700,000. Calculate the
years payback.
$380,000(CF1) + $440,000(CF2) + $480,000 (CF3) +
(200000/600000) CF4
Thus the payback is 3.333 Years
7. II = $850,000 year 1 to 4 cash flow is $340,000,
$420,000,
$500,000, and $600,000. Calculate the years
payback.
$340,000(CF1) + $420,000(CF2) + $(90000/500,000)

(CF3)
The payback is 2.18 Years
8.

II = $380,000 year 1 to 5 cash flow is $150,000,

$170,000, $190,000, $210,000, and $240,000.
Calculate the years payback

$150,000(CF1) + $170,000(CF2) + $(60000/190,000)

(CF3)
The payback is 2.32 Years
9.

II = $300,000 year 1 to 5 cash flow $120,000,

$150,000, $200,000, $300,000, and $350,000.
Calculate the years payback.

$120,000(CF1) + $150,000(CF2) + $(30000/200,000)

(CF3)
The payback is 2.15 Years
10. II = $400,000 year 1 to 4 cash flow is $160,000,
$180,000, $200,000, and $300,00. Calculate the
years payback.
$160,000(CF1) + $180,000(CF2) + $(60000/200,000)
(CF3)
The payback is 2.3 Years
11. II = $600,000 year 1 to 4 cash flow is $310,000,
$330,000, $360,000, and $400,000. Calculate the
years payback.

$310,000(CF1) + $(290,000/330000)(CF2) or The

payback is 1.88 Years
12. II = $900,000 year 1 to 5 cash flow is $240,000,
$260,000, $340,000, $360,000, and $500,000.
Calculate the years payback.
$240,000(CF1) + $260,000(CF2) + $340,000 (CF3) +
(60000/360000) CF4 or 3.17 Years is the Payback
13. II = $350,000 year 1 to 4 cash flow is $60,000,
$80,000,
$160,000, and $150,000. Calculate the years
payback.
$60,000(CF1) + $80,000(CF2) + $160,000 (CF3) +
(50000/150000) CF4 or 3.33 Years is the payback
14. II = $1,900,000 year 1 to 5 cash flow is $445,000,
$560,000,
$650,000, $750,000, and $800,000. Calculate the
years payback.
$445,000(CF1) + $560,000(CF2) + $650,000 (CF3) +
(245000/750000) CF4 or 3.33 Years is the payback
15. II = $750,000 year 1 to 4 cash flow is $250,000,
$360,000,
$420,000, and $500,000. Calculate the years
payback.

$250,000(CF1) + $360,000(CF2) + $(140000/420,000)

(CF3) or 2.333 Years is the payback period
16. II = $200,000 year 1 to 5 cash flow is $50,000,
$60,000, $80,000, $110,000, and $125,000.
Calculate the years payback
$50,000(CF1) + $60,000(CF2) + $80,000 (CF3) +
(10000/110000) CF4 or 3.33 Years is the payback

End of Quiz#6 Based on - Exercise#6 FIN 341