Profitability Index = Present Value of Future Cash Flows / Initial Investment
Profitability Index = $6,000(PVIFA11%, 5) / $30,000
Profitability Index = $22,175.38 / $30,000
Profitability Index = 0.74
What is the Profitability Index of a project that costs $30,000 today and is expected to...
What is the Profitability Index of a project that costs $46,000 today and is expected to generate annual cash inflows of $4,000 for the following 11 years. Assume the company's WACC is 8%. Round to two decimal places.
What is the Profitability Index of a project that costs $41,000 today and is expected to generate annual cash inflows of $5,000 for the following 10 years. Assume the company's WACC is 9%. Round to two decimal places.
A project costs $20,000 today and it is projected to generate annual cash inflows of $4,000 for 8 years starting in one year (end of year 1). If the cost of capital is 11%, what is this project's Profitability Index (PI)? Round to two decimal places.
eBook Profitability Index A project has an initial cost of $52,675, expected net cash inflows of $12,000 per year for 10 years, and a cost of capital of 11%. What is the project's PI (int: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places
1.Project L costs $35,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. 2.Project L costs $50,011.04, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places 3.Project L costs $60,000, its expected cash inflows are $15,000 per...
Profitability Index A project has an initial cost of $44,600, expected net cash inflows of $14,000 per year for 12 years, and a cost of capital of 14%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
1A. Project L costs $35,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. 1B. Project L costs $46,724.57, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places. 1C. Project L costs $65,000, its expected cash...
Project K costs $45,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 11%. What is the project's MIRR? Round your answer to two decimal places. Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.
DISCOUNTED PAYBACK Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Round your answer to two decimal places.
Project K costs $65,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Project K costs $48,457.36, its expected cash inflows are $10,000 per year for 11 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.