Present Value of Cash Inflows =
=
= 24056.536604
PI = Present Value of Cash Inflows / Intial Outlay
= 24056.536604 / 21000
= 1.145 OR 1.15
Option B is correct.
Sinan is considering a short term investment with the following cash flows. Given 6 percent is...
MC Qu. 5-A1 What is the profitability index for an investment with the follow... What is the profitability index for an investment with the following cash flows given a 8 percent required return? Year Cash Flow 0 $-21,000 1 $7,100 2 $9,400 3 $8,900
What is the profitability index for an investment with the following cash flows given a 8 percent required return? Cash Flow $-20,500 $7,400 $9,600 $8,900 Year 0 2 1.06 1.08 O 110 1.02 O 1.04
What is the profitability index for an investment with the following cash flows given a 10 percent required return? Year Cash Flow 0 $-33,000 1 $13,700 2 $16,000 3 $15,400 Note: Please explain how the present value factor is calculated.
What is the profitability index for an investment with the following cash flows given a 8 percent required return? Year Cash Flow 0 $-21,500 1 $7,100 2 $9,600 3 $8,500 A. 1.00 B. 1.02 C. .95 D. .96 E. .98
10. What is the profitability index for an investment with the following cash flows given a 145 perc required return? (10) Year WNHO Cash Flow -$46,500 $12,200 $38,400 $11,300
Consider the following cash flows: Year Cash Flow 0 $-7,700 1 4,000 2 4,100 3 5,400 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? b. What is the profitability index for the cash flows if the relevant discount rate is 18 percent? C. What is the profitability index for the cash flows if the relevant discount rate is 24 percent?
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
si vous ne postany de la 5. What is the profitability index for an investment with the following cash flows given a 14.5 percent required return? Year wNeo Cash Flow -$46,500 $12,200 $38,400 $11,300 A. 0.94 B. 0.98 C. 1.02 D. 1.06 E. 1.11 6. You are considering a project with an initial cost of $7,500. What is the payback period for this project if the cash inflows are $1,100, $1,640, $3,800, and $4,500 a year over the next four...
Year WN-O Cash Flow -$7,700 4,000 5,900 2,100 a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent? b. What is the profitability index for the cash flows if the relevant discount rate is 19 percent? c. What is the profitability index for the cash flows if the relevant discount rate is 24 percent? A firm evaluates all of its projects by using the NPV decision rule. Year WN=0 Cash Flow -$29,000...
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