A firm is reviewing a project that has an initial cost of $33,500. The project will...
A firm is reviewing a project that has an initial cost of $33,500. The project will produce annual cash inflows, starting with Year 1, of $8,000, $13,400, $18,600, $24,100, and finally in Year 5, $37,900. What is the profitability index if the discount rate is 11 percent?
Homework Answers
Calculate the profitability index as follows:
Profitability index 2.09.
Formulas:
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A firm is reviewing a project that has an initial cost of
$33,500. The project will...
A firm is reviewing a project that has an initial cost of $67,000. The project will...
A firm is reviewing a project that has an initial cost of $67,000. The project will produce annual cash inflows, starting with Year 1, of $8,000, $13,400, $18,600, $24,100, and finally in Year 5, $37,900. What is the profitability index if the discount rate is 12 percent? A) .92 B) .98 C) 1.02 D) 1.05 E) 1.09
14,15 and 16 please Problems. Select the b a nd answer an and the ke Healthy...
14,15 and 16 please
Problems. Select the b a nd answer an and the ke Healthy dividend rate of A $11.5 B $12 $12 $10 $13 A51.505.52 B. $1,067.24 $1,758.71 D $1.519 SR ES002.71 5. T qu 14. The Steel Factory is considering a project that will produce annual cash flows of SA ROO, SA0,200, 546,200, and $41,800 over the next four years, respectively. What is the internal rate of return the vital cost of the projet $127.9007-nilalament X 13.00...
really stuck on 13,14,15 and 16 please help supposed to show my work. thank you! Page...
really stuck on 13,14,15 and 16 please help supposed to show my
work. thank you!
Page 3 of 3 13. Empire Industries is considering adding a new product to its lineup. This product is expected to generate sales for four years after which time the product will be discontinued. What is the project's net present value at a required rate of return of 14.8 percent? Year Cash Flow -$62,000 16,500 23,800 0,731 27,100 23,300 267 1 2 Page 2 of...
A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally...
A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?
A project has expected cash inflows, starting with Year 1, of $900, $1,200, $1,500, and finally...
A project has expected cash inflows, starting with Year 1, of $900, $1,200, $1,500, and finally in Year 4, $2,000. The profitability index is 1.11 and the discount rate is 12 percent. What is the initial cost of the project? $4,098.24 $3,692.71 $3,211.06 $4,250.00 $3,899.16
1. A proposed project has an initial cost of $69,500 and is expected to produce cash...
1. A proposed project has an initial cost of $69,500 and is expected to produce cash inflows of $32,200, $50,500, and $43,000 over the next 3 years, respectively. What is the net present value of this project at a discount rate of 15.8 percent? $23,657.30 $21,763.60 $24,050.28 $24,933.59 2. A project has an initial cost of $19,000 and cash inflows of $4,200, $4,600, $11,600, and $5,750 over the next 4 years, respectively. What is the payback period? 4.22 years 2.88...
A $1.505.52 $1,067.24 C $1.758.71 D. $1,519 58 E$902.71 14. The Steel Factory is considering a project that will p...
A $1.505.52 $1,067.24 C $1.758.71 D. $1,519 58 E$902.71 14. The Steel Factory is considering a project that will produce annual cash flows of $43,800, $40,200, $46,200, and $41,800 over the next four years, respectively, What is the internal rate of return if the initial cost of the project is $127,900 A. 13.00 percent B. 10.19 percent C. 11.28 percent D. 12.24 percent E 12.83 percent 15. Athletic Corporation is planning a $1.08 million new production facility. This cost will...
Project ABC has an initial cost of $1,000 and generates cash inflow of $2,000 at the...
Project ABC has an initial cost of $1,000 and generates cash inflow of $2,000 at the end of year 1. Project QRS has an initial cost of $10,000 and has annual cash inflows of $4,400, $4,840, and $5,324 in year 1-3. Assuming a 10% discount rate, calculate the net present value and profitability index for both projects. Which project is better in terms of NPV? Which project is better in terms of PI?
A project has an initial cost of $92,500, a life of 8 years, and equal annual...
A project has an initial cost of $92,500, a life of 8 years, and equal annual cash inflows. The required return is 9.1 percent. According to the profitability index decision rule, what is the minimum annual cash flow necessary to accept the project?
Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800,...
Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3, respectively. Should the project be accepted if it has been assigned a required return of 9.75 percent? Why or why not?
14,15 and 16 please
Problems. Select the b a nd answer an and the ke Healthy dividend rate of A $11.5 B $12 $12 $10 $13 A51.505.52 B. $1,067.24 $1,758.71 D $1.519 SR ES002.71 5. T qu 14. The Steel Factory is considering a project that will produce annual cash flows of SA ROO, SA0,200, 546,200, and $41,800 over the next four years, respectively. What is the internal rate of return the vital cost of the projet $127.9007-nilalament X 13.00...
really stuck on 13,14,15 and 16 please help supposed to show my
work. thank you!
Page 3 of 3 13. Empire Industries is considering adding a new product to its lineup. This product is expected to generate sales for four years after which time the product will be discontinued. What is the project's net present value at a required rate of return of 14.8 percent? Year Cash Flow -$62,000 16,500 23,800 0,731 27,100 23,300 267 1 2 Page 2 of...
A $1.505.52 $1,067.24 C $1.758.71 D. $1,519 58 E$902.71 14. The Steel Factory is considering a project that will produce annual cash flows of $43,800, $40,200, $46,200, and $41,800 over the next four years, respectively, What is the internal rate of return if the initial cost of the project is $127,900 A. 13.00 percent B. 10.19 percent C. 11.28 percent D. 12.24 percent E 12.83 percent 15. Athletic Corporation is planning a $1.08 million new production facility. This cost will...
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