D. 1.314
Profitability Index = Present value of the future cash flows / Initial Investment
Profitability Index = ($12,000/1.084 + $12,500/1.0842 + $15,600/1.0843 + $10,100/1.0844) / $31,400
Profitability Index = 1.314
A project with an initial cost of $31,400 is expected to provide cash flows of $12,000,...
A project with an initial cost of $30,000 is expected to provide cash flows of $9,900, $11,100, $14,200, and $8,700 over the next four years, respectively. If the required return is 8.5 percent, what is the project's profitability index? Multiple Choice .999 1198 1.098 .835 1.348
A project with an initial cost of $61,600 is expected to provide annual cash flows of $12,600 over the 8-year life of the project. If the required return is 8.8 percent, what is the project's profitability index? Multiple Choice Ο 1.141 Ο Ο Ο Ο 1.046
A project with an initial cost of $58,000 is expected to provide annual cash flows of $11,250 over the 7-year life of the project. If the required return is 9.4 percent, what is the project's profitability index? .963 1.084 1.038 .803 .883
A project is expected to provide cash flows of $11,700, $12,300, $15,400, and $9,900 over the next four years, respectively. At a required return of 8.2 percent, the project has a profitability index of .713. For this to be true, what is the project's cost at Time 0?
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $40,900, $88,590, $63,490, $61,690, and $44,990, respectively. The project has an initial cost of $193,440 and the required return is 8.4 percent. What is the project's NPV?
Your firm is considering a project that costs $85,105. This opportunity will provide cash flows of $22,311, $10,601, $24,904, and $22,165 over the next four years. Your firm has a required rate of return of 14%. What is the project's profitability index?
Your firm is considering a project that costs $93,996. This opportunity will provide cash flows of $33,164, $18,441, $11,841, and $30,152 over the next four years. Your firm has a required rate of return of 11%. What is the project's profitability index?
A project with an initial cost of $68,200 is expected to generate annual cash flows of $18,010 for the next 7 years. What is the project's internal rate of return? 20.26% 18.23% 19.75% 17.32% 16.41%
1. A project with an initial cost of $61,950 is expected to generate annual cash flows of $17,460 for the next 6 years. What is the project's internal rate of return? 2. Windows and More is reviewing a project with sales of 6,200 units, ±2 percent, at a sales price of $29, ±1 percent, per unit. The expected variable cost per unit is $11, ±3 percent, and the expected fixed costs are $87,000, ±1 percent. The depreciation expense is $68,000...
13. A project has an initial cost of $38,300 and anticipated cash flows of $9,200, $18,700, $14,600 for Years 1 to 3, respectively. What is the profitability index value if the required return is 9.5 percent? .99 .86 .92 1.16 1.09