Question: please help with c9 q11 please help me solve 1-4 parts Profitability index. Given the discount rate and the future cash ow of each project
please help with c9 q11 please help me solve 1-4 parts




Profitability index. Given the discount rate and the future cash ow of each project listed in the following table, g , use the Pl to determine which projects the company should accept. E} What is the PI of project A? El (Round to two decimal places.) Data table (Click on the following icon [ in order to copy its contents into a spreadsheet.) Cash Flow Project A Project B Year 0 -$2,200,000 - $2,500,000 Year 1 $300,000 $1,250,000 Year 2 $500,000 $1,050,000 Year 3 $700,000 $850,000 Year 4 $900,000 $650,000 Year 5 $1, 100,000 $450,000 Discount rate 8% 12%Comparing all methods. Risky Business is looking at a project with the following estimated cash ow: @ . Risky Business wants to know the payback period, NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 13%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the ve different decision models. (I) What is the payback period for the new project at Risky Business? D years (Round to two decimal places.) Data table (Click on the following icon I: in order to copy its contents into a spreadsheet.) Initial investment at start of project: $13,500,000 Cash ow at end of year one: $2,160,000 Cash ow at end of years two through six: $2,700,000 each year Cash ow at end of years seven through nine: $2,592,000 each year Cash ow at end of year ten: $1,851,429
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