Question: Following data is available for Project Q: Project requires initial investment of ? 180 Crore. Calculate the profitability index of the Project P.(A) 0.25(B) 1.25(C)

Following data is available for Project Q: NPV ( in Crore) 15 30 60 75 Probability 0.2 0.3 0.3 Project requires initial investment of ? 180 Crore. Calculate the profitability index of the Project P.(A) 0.25(B) 1.25(C) 1.35(D) 1.45

NPV ( in Crore) 15 30 60 75 Probability 0.2 0.3 0.3 0.2

Step by Step Solution

★★★★★

3.32 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above questi... View full answer

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 Accounting Questions!

Following data is available for Project P: NPV ( in Crore) Probability 15 0.1 30 0.4 60 0.4 75 0.1 Calculate co-efficient of variation for the Project P. (A) 0.42 (B) 0.43 (C) 0.44 (D) 0.45

Calculate the profitability index for Problem 3. For Problem 4.

The following data is available for Blaine Corporation at December 31, 2015: Common stock, par $10 (authorized 30,000 shares) $250,000 Treasury Stock (at cost $15 per share) 900 Based on the data,...

NOP Chemicals Ltd produces two joint products, P and Q, from a common process. The following data is available for the month of March 2025: Total joint production cost: $60,000 Units produced: 2,000...

ROI and RI. (D. Kleespie, adapted) The Outdoor Sports Company produces a wide variety of outdoor sports equipment. Its newest division, Golf Technology, manufactures and sells a single product:...

The Sports Equipment Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single product- AccuDriver, a golf club that uses global...

The Outdoor Sports Company produces a wide variety of outdoor sports equipment. Its newest division, Golf Technology, manufactures and sells a single productAccuDriver, a golf club that uses global...

1. The following data are available for XY Ltd.: Earnings per share `3.00 Internal Rate of Return 15% Cost of Capital 12% If Walters valuation formula holds, what will be the price per share when the...

The Superior Equipment Company produces a wide variety of outdoor sports equipment. Its newest division, Golf Technology, manufactures and sells a single product: AccuDriver, a golf club that uses...

7. Following information is available for two machines: Particulars X (`) Y (`) Initial investment 1,00,000 1,00,000 Life 7 years 11 years Net Cash Inflow 25,000 20,000 Realisable value after 5 years...

Art. 87. Every donation or grant of gratuitous advantage, direct or indirect, between the during the marriage shall be void, except moderate gifts which the spouses may give ea on the occasion of any...

Consider Peter Drucker's well-known statement that "Culture eats strategy for breakfast." Do you think that Drucker is right? If not, why not? Explain your reasoning. Please use references

1. A brief paragraph introducing Coca Cola company, its cyber environment and provide a high-level overview of Coca Cola's need for a cyber risk mitigation strategy. (Paragraph introducing Coca Cola...

If you are a small business and have machinery valued at $28,000, land valued at $52,000, $14,000 in cash and a 10 year loan debt of $75,000, what is owners equity?:

QUESTIONONE For anyone considering doing business in Uganda, think ROKO. ROKO ConstructionLimited was founded in 1969 and is today one of Uganda's leading Construction andCivilEngineeringGroups....

Lotric Co. produces suction plates for toddlers. The plan for the next period is as follows: Sale of 9,000 plates in January, February, and March, and the same number of plates is expected for April...

Suppose the 2022 income statement for McDonald's Corporation shows cost of goods sold $5.178.0 million and operating expenses (including depreciation expense of $1,216.2 million) $10,725.7 million....

Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...

How does the rate-of-project-progress chart (Fig. 1-3) help a manager make decisions?

In spite of the recommendation, ASCL had already had a problem project list and system in place. Why do you think it may not have caught this particular project? Will the new procedure do any better?

What does the Project Final Report include?

What factors have made it desirable to manage supply chains? What are some potential benefits of doing so?

Why is good supplier relations important?

What is a preferred supplier? What are the advantages and disadvantages of using preferred suppliers?