NPV of Project =Cash Flow in year 10/(1+r)^10-Initial Investment
=160/(1+11%)^10-100 =-43.65
PI=1+NPV/Initial Investment =1-43.65/100 =0.56(Option a is correct
option)
Which of the following comes closest to the profitability index (Pl) of a project that requires...
Which of the following comes closest to the profitability index (PI) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 10if the required rate of return is 11%? a. 0.52 b. 0.47 ︵ c, 0.62 O d. 0.43 e. 0.56
Which of the following comes closest to the internal rate of return (IRR) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 11? The required rate of return for the project is 13%. a. 5.36% b. 4.81 % C. 3.99% d. 4.37% e. 6.05% Oc.
Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 13%? O a. ($17.23) b. $1.81 c. ($64.70) O d. ($50.32) e. ($34.55)
Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 12%? a. $1.81 O b.($17.23) c. ($34.55) O d. ($50.32) e. ($64.70)
Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 13%? a. $1.81 b. ($17.23) c. ($64.70) d. ($34.55) e. ($50.32)
4 points Save Ans comes closest to the net present value of a project that requires an initial investment of $250 and produces cash fliows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 13%? a (S50 32) b.$1.81 c ($64.70) e d. ($17 23) e(S34.55)
Which of the following comes closest to the net present value (NPV) of a project whose initial investment is $5 and which produces two cash flows: the first at the end of year 2 of $3 and the second at the end of year 4 of $7? The required rate of return is 12%? O a. $1.64 b. $1.84 oc. $0 od. $2.05 e. $2.26
QS 24-10 Profitability index LO P3 Yokam Company is considering two aternative projects. Project requires an initial Investment of $490,000 and has a present value of cash flows of $2.250.000. Project 2 requires an initial Investment of $4 million and has a present value of cash flows of $7 m lon. 1. Compute the profitability Index for each project. Profitability Index Choose Numerator: Choose Profitability Index Profitability index Project Project 2. Based on the profitability Index, which project should the...
A project requires an initial investment of $73,000 and has a project profitability index of 0.319. The present value of the future cash inflows from this investment is: Multiple Choice Ο $23,287 Ο $96,287 Ο $73,000 Ο $49,713
A project that requires an initial investment of $850,000 has a profitability index of 1.78. Calculate the project's net present value (NPV). The required return of the project is 10 percent. A. $592,500 B. $772,727 C. $663,000 D. $1,513,000