The following information is available for a potential capital investment. The potential investments profitability index (rounded to
Question:
The following information is available for a potential capital investment.
The potential investment’s profitability index (rounded to two decimals) is:
(a) 5.40.
(b) 1.19.
(c) 1.23.
(d) 1.40.
Transcribed Image Text:
Initial investment Salvage value Net annual cash flow Net present value Useful life $80,000 10,000 14,820 18,112 10 years
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Tobias sifuna
I am an individual who possesses a unique set of skills and qualities that make me well-suited for content and academic writing. I have a strong writing ability, allowing me to communicate ideas and arguments in a clear, concise, and effective manner. My writing is backed by extensive research skills, enabling me to gather information from credible sources to support my arguments. I also have critical thinking skills, which allow me to analyze information, draw informed conclusions, and present my arguments in a logical and convincing manner. Additionally, I have an eye for detail and the ability to carefully proofread my work, ensuring that it is free of errors and that all sources are properly cited. Time management skills are another key strength that allow me to meet deadlines and prioritize tasks effectively. Communication skills, including the ability to collaborate with others, including editors, peer reviewers, and subject matter experts, are also important qualities that I have. I am also adaptable, capable of writing on a variety of topics and adjusting my writing style and tone to meet the needs of different audiences and projects. Lastly, I am driven by a passion for writing, which continually drives me to improve my skills and produce high-quality work.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial And Managerial Accounting
ISBN: 9781118004234
1st Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
Question Posted:
Students also viewed these Business questions
-
Use the information given in the diagram to write a plan for proving that 1 2. A 1 F B E C 2 D
-
inflation is starting to rise, and George Soros wants to invest in an asset that will maintain its purchasing power. He puts his attention to gold and sees the spot price is $1,825 per ounce. The...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
A line charge density pL of length L lies parallel to an infinite sheet of surface charge density ps. How much work is required to rotate the line charge so that it is vertical?
-
A parent has two children living in cities with different costs of living. The cost of living in city B is 3 times the cost of living in city A. The child in city A has an income of $2,000 and the...
-
Truck suspensions often have helper springs that engage at high loads. One such arrangement is a leaf spring with a helper coil spring mounted on the axle, as in Figure P7.17. The helper spring...
-
During the second quarter of 2020, the federal government attempted to support the economy using several programs, including making \($788\) billion in additional unemployment insurance payments to...
-
Coakley Company acquired 30% of the outstanding common stock of Ginger Inc. on January 1, 2012, by paying $1,800,000 for 60,000 shares. Ginger declared and paid a $0.50 per share cash dividend on...
-
In a jurisdiction where assisted suicide is illegal, a terminally ill patient with no chance of recovery seeks assistance in ending their life. What legal and ethical considerations come into play,...
-
A post-audit of an investment project should be performed: (a) on all significant capital expenditure projects. (b) on all projects that management feels might be financial failures. (c) on randomly...
-
An example of an intangible benefit provided by a capital budgeting project is: (a) the salvage value of the capital investment. (b) a positive net present value. (c) a decrease in customer...
-
At the beginning of 2015, Fidelitys Equity Income Fund had a beta of 0.89, whereas T. Rowe Prices Growth and Income Fund had a beta of 0.99.
-
Explain briefly recent developments in auditing in China which may make proposals to reduce the Big Four firms dominance in the large company audit market redundant.
-
Compare Kotters eight-step change management process (www.kotterinc.com/8-step-process-for-leading-change/) with the ADKAR model (www.prosci.com/methodology/adkar). What steps are similar, and what...
-
In highly automated facilities, firms frequently increase the job responsibilities of the skilled workers who remain after automation has replaced the manual laborers, although there is less...
-
Outline the key features of the general process of monitoring auditors performance.
-
To date, it appears that purchasing has been one of the primary beneficiaries of supply chain management. Why do you think this is so? What do you expect will happen in the future?
-
You are finalizing a bank loan for $200,000 for your small business and the closing fees payable to the bank are 2% of the loan. After paying the fees, what will be the net amount of funds from the...
-
Suppose a population of bacteria doubles every hour, but that 1.0 x 106 individuals are removed before reproduction to be converted into valuable biological by-products. Suppose the population begins...
-
On January 1, 2012, Trikel, Corp., issued $600,000 of 8.375%, five-year bonds payable when the market interest rate was 10%. Trikel pays interest annually at year-end. The issue price of the bonds...
-
On December 31, 2012, when the market interest rate is 8%, Benson Realty, Co., issues $300,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. Requirements 1. Determine the...
-
On January 1, 2012, Platz, Inc., issued $200,000 of 9%, five-year bonds payable at 106. Platz has extra cash and wishes to retire the bonds payable on January 1, 2013, immediately after making the...
-
Required 1 Required 2 Required 3 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the...
-
Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Unadjusted Trial Balance December 31 Professional library Accumulated depreciation-Professional library Equipment Accumulated...
-
How do specific considerations for reading and writing about literature affect the understanding of and communication about literature? 1. Defines close reading and its purpose. 2. Discusses an...
Study smarter with the SolutionInn App