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 $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
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?
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
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...
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.
Company X is currently considering a project that will produce cash inflows of $9,000 a year for two years followed by $6,500 a year for three more years. The cost of the project is $25,000. What is the profitability index if the discount rate is 8 percent? Possible Answers: 1.22 1.30 1.47 1.53 1.60
What is the present value of the cash inflows if a project uses a 12 discount rate. The initial investment will be $12,950 and produce $3,000 in annual cash inflows. The estimated life of the project is ten years. Also, calculate the profitability index.
eBook Profitability Index A project has an initial cost of $52,675, expected net cash inflows of $12,000 per year for 10 years, and a cost of capital of 11%. What is the project's PI (int: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places
A project has an initial cost of $44,700, expected net cash inflows of $15,000 per year for 12 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 8%. What is the...
•A project has an initial cost of $18,000 and is expected to produce cash inflows of $7,000, $9,000, and $7,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 12 percent?