A project has an initial outlay of $1,173. It has a single payoff at the end...
A project has an initial outlay of $1,173. It has a single payoff at the end of year 8 of $9,977. What is the profitability index (PI) of the project, if the company’s cost of capital is 6.73 percent? Round the answer to two decimal places.
Homework Answers
| Profitability index (PI) of the project | = | Present value of cash inflows/Initial cash outlay | |||||||
| = | $ 5,925.27 | / | $ 1,173.00 | ||||||
| = | 5.05 | ||||||||
| Working: | |||||||||
| Present value of cash inflows | = | 9977*(1.0673^-8) | |||||||
| = | $ 5,925.27 | ||||||||
Add Answer to:
A project has an initial outlay of $1,173. It has a single
payoff at the end...
A project has an initial outlay of $1,921. It has a single payoff at the end...
A project has an initial outlay of $1,921. It has a single payoff at the end of year 5 of $9,385. What is the profitability index (PI) of the project, if the company's cost of capital is 14.24 percent? Round the answer to two decimal places.
A project has an initial outlay of $3,559. It has a single payoff at the end...
A project has an initial outlay of $3,559. It has a single payoff at the end of year 2 of $7,509. What is the net present value (NPV) of the project if the company’s cost of capital is 13.33 percent? Round the answer to two decimal places.
A project has an initial outlay of $4,724. It has a single payoff at the end...
A project has an initial outlay of $4,724. It has a single payoff at the end of year 2 of $7,572. What is the net present value (NPV) of the project if the company's cost of capital is 13.50 percent? Round the answer to two decimal places.
A project has an initial outlay of $1,819. It has a single cash flow at the...
A project has an initial outlay of $1,819. It has a single cash flow at the end of year 8 of $5,334. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form.
A project has an initial outlay of $1,399. It has a single cash flow at the...
A project has an initial outlay of $1,399. It has a single cash flow at the end of year 5 of $4,917. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
A project has an initial outlay of $2,221. It has a single cash flow at the...
A project has an initial outlay of $2,221. It has a single cash flow at the end of year 5 of $5,195. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form. Please show me how to calculate it in Excel
Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to...
Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company’s project, assuming the company’s cost of capital is 5.05 percent. The initial outlay for the project is $393,543. The project will produce the following end-of-the-year after-tax cash inflows of Year 1: $146,359 Year 2: $112,569 Year 3: $151,495 Year 4: $143,366 Round the answer to two decimal places.
Problem 10-04 Profitability Index A project has an initial cost of $62,950, expected net cash inflows...
Problem 10-04 Profitability Index A project has an initial cost of $62,950, expected net cash inflows of $9,000 per year for 8 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
Problem 10-04 Profitability Index A project has an initial cost of $48,475, expected net cash inflows...
Problem 10-04 Profitability Index A project has an initial cost of $48,475, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 9%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
Profitability Index A project has an initial cost of $44,600, expected net cash inflows of $14,000...
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.
A project has an initial outlay of $1,921. It has a single payoff at the end of year 5 of $9,385. What is the profitability index (PI) of the project, if the company's cost of capital is 14.24 percent? Round the answer to two decimal places.
A project has an initial outlay of $4,724. It has a single payoff at the end of year 2 of $7,572. What is the net present value (NPV) of the project if the company's cost of capital is 13.50 percent? Round the answer to two decimal places.
A project has an initial outlay of $1,399. It has a single cash flow at the end of year 5 of $4,917. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
Problem 10-04 Profitability Index A project has an initial cost of $48,475, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 9%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
Most questions answered within 3 hours.
-
Which of the following statements is true regarding the nature
of culture?
A.We are born with...
asked 1 minute ago -
(a) 2
NO2(g) à 2
NO(g) +
O2(g)
The rate law for this reaction
is 2nd...
asked 4 minutes ago -
Write the overall reaction for the RedOx
reaction (below) when it occurs in an acidic environment....
asked 11 minutes ago -
Two forces are acting on an object. Force 1 on the object is 6.0
N and...
asked 12 minutes ago -
You are planning for retirement. You plan to work for 20 years.
Starting a year from...
asked 25 minutes ago -
The African Adventures exhibit water system holds approximately
850,000 gallons (3.2x109 g) of water. The temperature...
asked 17 minutes ago -
which of the following is capital?
the barn a farmer uses to hold the chickens he...
asked 27 minutes ago -
Attribute
Sample Value
Sample Value
Sample Value
Sample Value
pirate_num
11
22
43
54
pirate_lname
James...
asked 20 minutes ago -
10. Two forces act on a 3 kg object, the gravitational force and
a second, constant...
asked 37 minutes ago -
Dividing Partnership Net Loss
Leigh Meadows and Byron Leef formed a partnership in which the
partnership...
asked 34 minutes ago -
Discuss how Entrepreneurial leadership style differs
from traditional leadership?
asked 1 hour ago -
A futuristic design for a car is to have a large solid
disk-shaped flywheel within the...
asked 58 minutes ago