The original Seven Essays, in a cool, new outfit ...
Call 412-567-OXEN [6936] Fax 412-567-6936 Email - [email protected]

All posts in General Questions

The shop foreman at Santa Barbara Rig Service proposed a portable service unit requiring an initial outlay of $100,000 and providing the following year-end cash flows:

Year 1 2 3 4 5
Cash flow 30000 -50000 70000 60000 50000

At a 10% required return, find the payback period and present value payback period (discounted payback period) for the investment. Interpret these measures for a manager who is not trained in finance.

Operating cash inflows

Categories: General Questions
Comments Off

Operating cash inflows

$1,000 $1000 $1000 $1000 $1000

$2,500
Initial Outlay

The cash flow pattern depicted is associated with a capital investment and may be characterized as:

A. an annuity and conventional cash flow

B. a mixed stream and conventional cash flow

C. an annuity and non-conventional cash flow

D. a mixed stream and non-conventional cash flow

Operating Cash Flows

Categories: General Questions
Comments Off

Operating Cash Flows

$25,000 $10,000 $50,000 $10,000 $10,000 $ 60,000

-$100,000
Initial Outlay

The cash flow pattern depicted is associated with a capital investment. How may it be characterized? (Mixed Stream, Annuity, Conventional Cash Flow, Non-Conventional Cash Flow).