Question: PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONS What is the profitability index for an investment with the following cash flows given an 8 percent required


PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONSWhat is the profitability index for an investment with the following cash flows given an 8 percent required return? Year Cash Flow 0 -$28,000 11,200 2 13,500 3 12,900 1 0.74 1.15 1.08 1.34 0.87 5.5 points A firm currently sells $2,000,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line and projects sales of $400.000 from the less expensive product line. The discount line is expected to reduce sales of the expensive product line to $1,900,000. What is the incremental revenue associated with the discount product line? (5100,000 $100,000 5300,000 $400,000 $1,900,000 5.6 points ABC, Inc. is considering a new project requiring an5270,000 initial investment in equipment having a useful life of 3 years with zero expected salvage value. The investment will produce $220,000 in annual revenues and $180,000 in annual costs. Assume a tax rate of 30% and straight line depreciation. What is the operating cash flow per year? $118.000 567.000 $91,000 $69,000 $55.000 MacBook Air Mario's Home Systems has sales of $2,900, costs of goods sold of $2,240, average inventory of $520, and accounts receivable of $438. What is Mario's days' inventory outstanding? 71.37 days 65.45 days 55.13 days 83.57 days 84.73 days
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
