A project has the following cash flows. Assume an interest rate of 14%. What is the Profitability Index (PI)?
Year | Cash Flow |
0 | -$884 |
1 | $224 |
2 | $223 |
3 | $418 |
4 | $394 |
Note: Enter your answer rounded off to two decimal points.
A project has the following cash flows. Assume an interest rate of 14%. What is the...
A project has an initial outlay of $2,555. The project will generate cash flows of $3,249 in Years 1-5. What is the Equivalent Annual Annuity (EAA) of this project? Assume an interest rate of 14%. Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. If your answer is negative, enter your answer as a negative number rounded off to two decimal points.
Calculate the Profitability Index for a project with the following potential cash flows. Assume a discount rate (risk-adjusted WACC) of 5.9%. Year Cash Flow 0 -17,580 1 4,970 2 6,163 3 4,904 4 2,973 5 5,552 Enter your answer as a number with 2 places of decimal precision (i.e. 1.23) Do not enter the dollar sign or commas. Do not round intermediate calculations (PVs or NPV)
A project has an initial outlay of $2,087. The project will generate annual cash flows of $591 over the 5-year life of the project and terminal cash flows of $247 in the last year of the project. If the required rate of return on the project is 6%, what is the net present value (NPV) of the project? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
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
Company XYZ is considering a project with the following projected cash flows: CF0: -27,139 C01: 9,834 C02: 9,832 C03: 13,857 C04: 1,700 Calculate the Profitability Index (PI) of the project. Assume a WACC (discount rate) of 10.6%. Enter your answer as a number with two decimal places of precision (i.e. 1.23).
1. Aerospace Dynamics will invest $158,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth year’s cash flow is negative.) Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 49,000 2 59,000 3 50,000 4 (54,000 ) 5 110,000 a. What is the net present value of the project? (Negative amount should...
1. The relevant discount rate for the following set of cash flows is 14 percent. What is the profitability index? Year Cash Flow 0 $-9,800 1 $4,600 2 $3,300 3 $3,800
1. Allen Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$32,374 1 $6,334 2 $13,790 3 $12,995 4 $20,673 5 $29,260 The company uses a discount rate of 7 percent on all of its projects. Calculate the profitability index of the project? 2. Elway Corp. is considering a project with the following cash flows. Year Cash Flows 0 -$45,331 1 $15,903 2 $24,490 3 $34,625 4 -$11,486 5 $40,937 The company uses a discount...