Question: A project has an initial cost of $246, expected net cash inflows as below noted, and a cost of capital of 7%. What is the

A project has an initial cost of $246, expected net cash inflows as below noted, and a cost of capital of 7%. What is the project's Profitability Index? (answer positive number with two decimals and no comma nor dollar sign)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A recent survey from PayScale found that 46% of U.S. workers roughly 22 millionare underemployed, either working part-time or at jobs that dont allow them to use their education or skills. Suppose...

A project has an initial cost of $250, expected net cash inflows as below noted, and a cost of capital of 7%.What is the projects Profitability Index? (answer positive number with two decimals and no...

8. Problem 10-04 (Profitability Index) eBook Profitability Index A project has an initial cost of $35,000, expected net cash inflows of $15,000 per year for 7 years, and a cost of capital of 10%....

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 8%. What is the project's IRR? Round your answer to two decimal places....

ebook Problem 10-05 Payback A project has an initial cost of 650,725, expected net cash inflows of $13,000 per year for 7 years, and a cout of capital of 11%. What is the project's payback penod?...

You will calculate investment returns using various ROI methods and appraise a specified new investment to determine its profitability. Problem 1 : A project has an initial cost of $ 4 0 , 0 0 0 ,...

Can the following Question be answered? Please apply answers in an Excel Format with a separate tab for each answer. NPV - Part 1) A project has an initial cost of $40,000, expected net cash inflows...

eBook Profitability Index A project has an initial cost of $ 3 5 , 0 0 0 , expected net cash inflows of $ 1 4 , 0 0 0 per year for 7 years, and a cost of capital of 8 % . What is the project's PI ? (...

NPV A project has an initial cost of $ 4 0 , 0 0 0 , expected net cash inflows of $ 9 , 0 0 0 per year for 7 years, and a cost of capital of 1 1 % . What is the project's NPV ? ( Hint: Begin by...

Profitability Index A project has an initial cost of $60,000, expected net cash inflows of $15,000 per year for 7 years, and a cost of capital of 11%. What is the project's (Hint: Begin by...

Profitability Index Not Answered Project Tias an initial cost of $51,475, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 12%. What is the project's PI? (Hint:...

Referring to Applied Example 11. 7: a. Express the percentage of Americans who prefer baked to other by region as a 2 = 4 contingency table. b. Explain why the following question could be tested...

Assume Company X paid a dividend of $1.80 per share this year. The company expects dividends to grow in perpetuity at 5 percent per year, and the company's cost of equity capital is 7%. The $1.80...

What is the purpose of the lead management functionality in CRM software? A ) To track employee performance B ) To prioritize potential customers C ) To manage financial transactions D ) To schedule...

The following data gives the pH in rain/sleet/snow for 2004-05 at 20 rural sites on the US west coast. 5.335 5.345 5.395 5.305 5.315 5.38 5.52 5.19 5.455 5.33 5.36 6.285 5.35 5.125 5.115 5.51 5.34...

You are using a 2252 thermistor, = 3940, and you measure a resistance of 672.5 ohms. What is the temperature in C that you are measuring? (Type in a one-decimal number)

A multiple-choice test consists of 23 questions with possible answers of a, b, c, d, e. Estimate the probability that with random guessing, the number of correct answers is at least 10.

4. Let P(z) be a polynomial (a) (3 points) Prove that (2) P(z) i 1 2Z n where a1 . .. , an are the roots of P and mi,.. . , mn E Z>o are their multiplicities. (Hint: what is the derivative of log...

Seek power series solution of the given differential equation about the given point x 0 ; Find the recurrence relation.

Analyze whether you believe in your personal opinion that the Idaho legislature met the compelling reason standard to restrict free speech.

Do you insist that job descriptions are developed to accurately depict jobs that are dangerous or hazardous?

Why is it important to have a code of ethics?

Are you fair and impartial when dealing with disciplinary action, promotion, transfer, demotion, resignation, discharge, layoff, and retirement?