Question: Hi, I got help on this question previously but the Present Value Index is coming up as incorrect. Could you please help. The answer I

Hi, I got help on this question previously but the Present Value Index is coming up as incorrect. Could you please help.

The answer I got for A is =0.43

PVIFA (10%, 3 Year) = 2.487

The answer for B was=0.49 PVIFA (10%, 5 Year) = 3.791

It states "Enter Present value index to 2 decimals" so I'm not sure if that's the issue of why it's coming up wrong.

Hi, I got help on this question previously but the Present ValueIndex is coming up as incorrect. Could you please help.The answer Igot for A is =0.43PVIFA (10%, 3 Year) = 2.487The answer for

\fPresent Value of $1 at Compound Interest Year 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 NJ 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 3 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 A 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 5 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 6 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 7 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 8 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 9 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.614 0.558 0.508 0.463 0.422 0.295 0.270 0.247 10 0.386 0.352 0.322Calculate the net pres esent value index for each project using the present value tables provide Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: Use a minus sign to indicate a negative NPV. " If an amount is zero, enter."0". Enter the present value index to 2 decimals. Project A Project B Total present value of net cash flow $ 236,265 200,923 Amount to be invested 165,000 #135,000 Net present value $ 71,265 #65,923 Present value index: Project A Project B Based upon net present value, which project has the more favorable profit prospects? _ Project A I upon the present value index, which project is ranked higher? Projectn asia

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 Accounting Questions!