Information on three potential projects is given below: Required: 1. Compute the project profitability index for each
Question:
Required:
1. Compute the project profitability index for each project.
2. Rank the projects in terms of preference.
Transcribed Image Text:
Project A В Investment required.... Present value of cash inflows.. Net present value.... $(170,000) 229,500 $ 59,500 $(190,000) 294,500 $ 104,500 $(220,000) 330,000 $ 10,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
1 The project profitability index for each proposal is Project Net Present Value a ...View the full answer
Answered By
Josiah Salako
Science teacher focused in Chemistry, STEM education, behavioural and leadership management. I have earned the highest mark for the quality and creativity of classroom teaching, lesson plans and instructional materials used in teaching diverse subjects.
I always strive to bring the best in the work and help set my students up for a lasting success in their academic work. My philosophy is: "Anything less than excellence becomes an acceptance for mediocrity".
0.00
0 Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Question Posted:
Students also viewed these Managerial Accounting questions
-
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 5 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build,...
-
Rank the following in terms of decreasing nucleophilicity: CH 3 CO 2 - CH 3 OH CH 3 O - CH 3 CO 2 H NC -
-
Conceptually, what does the project profitability index represent? How should it be used to compare competing investment projects?
-
In Table 4. 4, Professor Kip Viscusi estimates that the cost per life saved by current government risk-reducing programs ranges from $100,000 for unvented space heaters to $72 billion for a proposed...
-
Suppose that iNY = 2 percent, iLondon = 6 percent, xa (expected appreciation of the pound) = minus 1 percent (that is, the pound is expected to depreciate by 1 percent), and RP (risk premium for...
-
In the diagram, OA = 1 cm, angle AOB = angle BOC = angle COD = /4 and angle OAB = angle OBC = angle OCD = /2. a. Find the length of OD, giving your answer in the form a2. b. Show that the perimeter...
-
Refer to Exercise 4.80 and obtain the (a) mean; (b) variance; (c) standard deviation for the number of requests for conference rooms. Data From Exercise 4.80 4.80 Upon reviewing recent use of...
-
Do you think global businesses would be willing to subscribe to a global code of conduct? Explain your answer.
-
How does Lean Management foster a culture of continuous improvement and waste reduction within organizational processes ? Explain
-
Suppose that an economy has the Phillips curve = 1 0.5( u 0.06). a. What is the natural rate of unemployment? b. Graph the short-run and long-run relationships between inflation and unemployment....
-
Hesselwood Companys market research division has projected a substantial increase in demand over the next several years for one of the companys products. To meet this demand, the company will need to...
-
The management of Deitrich Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows: Required: 1. Determine the payback...
-
We have seen that wear can have detrimental effects on engineering components, tools, dies, etc. Can you visualize situations in which wear could be beneficial? Give some examples.
-
Distinguish between a small business and an entrepreneurial venture. If you were to start your own business, which would you wish it to be? Why? Discussion Requirements: Initial response is due by...
-
What are the uses of recombinant DNA pharmaceuticals?
-
Write a program to calculate the total price for car wash services. A base car wash is $10. The cost for additional services are as follows: Air freshener Rain repellent Tire shine Wax Vacuum $1 $2...
-
What is the 10 plus 2 rule . How does it affect the companys global transportation operations?
-
1. What do you understand by the term "civil society" and what is its purpose? 2. What is the purpose of rights? 3. Define and give examples of the following type of rights: a. Civil b. Political c....
-
Find the derivative of each function defined as follows. s(t) = 12(2t 4 + 5) 3/2
-
For the following exercises, find the area of the triangle. Round to the nearest hundredth. 22 50 36
-
Solve each of the following parts independently: 1. Neal company would to initiate a managements development program for its executives. The program would cost $100,000 per year to operate. What...
-
The Midtown Cafeteria employs five people to operate antiquated dishwashing equipment. The cost of wages for these people and for maintenance of the equipment is $85,000 per year. Management is...
-
Dwyer Company is considering two investment projects. Relevant cost and cash flow information on the two projects is given below: The trucks would have a $15,000 salvage value in nine years. For tax...
-
Find the first derivative of the following equation: a. b. y=e3x y=e(x+1) d. y=125x+16-2x y=ln x y=ln (3x+x1) y=In (x+1)
-
The Cutting Department of Lasso Company has the following production and cost data for August. Production Costs 1. Started and completed 9,600 units. Beginning work in process $0 2. Started 2,300...
-
There is sufficient evidence to support the conclusion that a robust relationship exists between drugs and crime. Explain and discuss the studies that support this conclusion. Further explain and...
Study smarter with the SolutionInn App