Your firm is considering a project that costs $85,105. This opportunity will provide cash flows of $22,311, $10,601, $24,904, and $22,165 over the next four years. Your firm has a required rate of return of 14%. What is the project's profitability index?
profitability index = Present value of cash inflows / initial investment
Present value of cash inflows = 22,311 / (1 + 0.14)1 + 10,601 / (1 + 0.14)2 + 24,904 / (1 + 0.14)3 + 22,165 / (1 + 0.14)4
Present value of cash inflows = 19,571.05263 + 8,157.125269 + 16,809.49064 + 13,123.45935
Present value of cash inflows = 57,661.12789
profitability index = 57,661.12789 / 85,105
profitability index = 0.68
Your firm is considering a project that costs $85,105. This opportunity will provide cash flows of...
Your firm is considering a project that costs $93,996. This opportunity will provide cash flows of $33,164, $18,441, $11,841, and $30,152 over the next four years. Your firm has a required rate of return of 11%. What is the project's profitability index?
Your firm is considering a project that costs $56,589. This opportunity will provide cash flows of $11.473, $13,222, $15,861, and $10,720 over the next four years. Your firm has a required rate of return of 7%. What is the project's npv?
Your firm is considering a project that costs $64,988. This opportunity will provide cash flows of $14,511, $26,263, $15,280, and $28,209 over the next four years. Your firm has a required rate of return of 17%. What is the project's npv?
A project is expected to provide cash flows of $11,700, $12,300, $15,400, and $9,900 over the next four years, respectively. At a required return of 8.2 percent, the project has a profitability index of .713. For this to be true, what is the project's cost at Time 0?
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
A project with an initial cost of $31,400 is expected to provide cash flows of $12,000, $12,500, $15,600, and $10,100 over the next four years, respectively. If the required return is 8.4 percent, what is the project's profitability index? Ο Ο 1.205 Ο 1.479 Ο 761 Ο 1.314 Ο 1.095
A company is considering a new project that will cost $750,000. The project is expected to generate positive cash flows over the next four years in the amounts of $350,000 three, and $180,000 in year four. The required rate of return is 896. What is the project's Profitability Index (Pi)? Use this Excel File to calculate your answer. The Excel file will not save your answers. 1.10 1.14 1.12 1.08
You are considering a project that costs $300 and has expected cash flows of $110, $121, and $133.10 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?
A project with an initial cost of $58,000 is expected to provide annual cash flows of $11,250 over the 7-year life of the project. If the required return is 9.4 percent, what is the project's profitability index? .963 1.084 1.038 .803 .883
A project that costs $3,200 to Install will provide annual cash flows of $820 for each of the next 7 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) NPV $ b. Is this project worth pursuing? Yes NO c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)