D. 1.085
Profitabiity index = Present value of the future cash flows / Initial Investment
Profitabiity index = ($4,500/1.04 + $3,250/1.042 + $3,000/1.043 + $1,000/1.044) / $10,000
Profitabiity index = 1.085
What is the Profitability Index for a project with the following cash flows, at 4.0% Cost...
What is the Equivalent Annuity Amount for a project with the following cash flows. at 4.0%? Cost Returns 0 1 2 3 4 ($10,000) $4.500 $3,250 $3,000 $1,000 $183.60 $191.72 $198.13 $203.01
What is the NPV for a project with the following cash flows, at 4.0%? Cost Returns 0 1 2 3 4 ($10,000) $4,500 $3,250 $3,000 $1,000 O$746.39 $762.93 $796.48 O$853.52
What is the Equivalent Annuity Amount for a project with the following cash flows, at 4.0%? Cost Returns 0 1 2 3 4 ($10,000) $4,500 $3,250 $3,000 $1,000 $183.60 $191.72 $198.13
Question 2 (1 point) What is the discounted payback for a project with the following cash flows, at 4.0%? Cost 0 ($10,000) Returns 1 $4,500 2 $3,250 3 $3,000 4 $1,000 2.25 02.5 03.0 3.9
What is the profitability index (PI) of a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 3,000 2 $ 3,000 3 $ 3,000 4 $ 3,000 5 $ 3,000 6 $ 3,000 Group of answer choices 0.88 0.93 1.03 1.09 None of these are correct.
What is the profitability index (PI) of a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (14,000) 1 $ 3,000 2 $ 3,000 3 $ 3,000 4 $ 3,000 5 $ 3,000 6 $ 3,000 Group of answer choices None of these are correct. 0.88 1.03 1.09 0.93
What is the profitability index (PI) of a project that has the following cash flows? The required return is 10.0%. Year Cash Flow 0 $ (14,000) 1 $ 3,000 2 $ 3,000 3 $ 3,000 4 $ 3,000 5 $ 3,000 6 $ 3,000 Group of answer choices 1.09 0.93 None of these are correct. 1.03 0.88
What is the IRR for a project with the following cash flows? O ($10,000) Returns 1 $4,500 2 $3,250 3 $3,000 4 $1,000 Cost 7.16% 8.91% 9.12%
What is the payback for a project with the following cash flows? Cost Returns O ($10.000) 1 $4,500 2 $3,250 3 $3,000 4 $1,000 Ο 1.5 Ο 2.5 ΟΟΟ Ο 2.75 3.2
Calculating Profitability Index What is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? What if the discount rate is 15 percent? If it is 22 percent? YearCash Flow0-$29,500116,900213,60038,300