Question 14 (3 points) Listen You are evaluating a 4-year project, and its cash flows are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 14 (3 points) Listen You are evaluating a 4-year project, and its cash flows are -65000, 24000, 13000, 28000, 18000 for years 0 to 4, respectively. If the cost of capital for the project is 9.4 percent, what is the project's profitability index? 0.61 0.77 0.9 1.03 1.15 1.32 Question 14 (3 points) Listen You are evaluating a 4-year project, and its cash flows are -65000, 24000, 13000, 28000, 18000 for years 0 to 4, respectively. If the cost of capital for the project is 9.4 percent, what is the project's profitability index? 0.61 0.77 0.9 1.03 1.15 1.32
Expert Answer:
Answer rating: 100% (QA)
Profitability index Present value of cash inflows Initial cash outflow 6676... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
Students also viewed these accounting questions
-
If the cost of capital is 9 percent and an investment costs $56,000, should you make this investment if the estimated cash flows are $5,000 for years 1 through 3, $10,000 for years 4 through 6, and...
-
You are evaluating a project that will require an investment of $10 million that will be depreciated over a period of 7 years. You are concerned that the corporate tax rate will increase during the...
-
The cost of capital for a firm is 10 percent. The firm has two possible investments with the following cash inflows: a. Each investment costs $480. What investment(s) should the firm make according...
-
Ten thousand dollars is deposited in a savings account at 4.6% interest compounded continuously. When will the balance triple? O within a year of investment. O In 10 years approximately. none of the...
-
What are the basic criticisms that PETA makes of KFC? Are they convincing? Are its criticisms similar to timeless criticisms of business mentioned in the chapter?
-
During December 2010, Amin Corp. manufactured products requiring 8,000 standard labor hours. The following variance and actual information is available: Labor rate variance ........ $4,500 U Labor...
-
In question 1, identify the marketing as opposed to the business strategy. Data From Question 1: What is a business strategy? Do you agree with the definition proposed? Illustrate your answer with...
-
The trial balance of Lexington Inn Company at December 31, 2012, and the data needed for the month-end adjustments follow. Adjustment data at December 31 follow: a. Prepaid insurance still in force,...
-
B2: Export Subsidy Consider a hypothetical market for alpaca wool socks in Peru. Assume the domestic supply and domestic demand for sweaters are respectively given by and Qs = 10+5P QD = 100 - 4P...
-
A company conducts a consumer survey with questions about home ownership (OwnHome: Yes/No), car ownership (OwnCar: Yes/No), annual household spending on food (Food), and annual household spending on...
-
On January 1, 2021, Rare Bird Ltd. purchased 16% bonds dated January 1, 2021, with a face amount of $25 million. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity, the...
-
During floor - planning, which phase is most important in minimizing the area and interconnections of the IC ? ? Question 1 5 1 5 Answer global routing detailed rounting none of the given answers...
-
An IT company has 1 0 0 1 0 0 servers. Due to increased users, the business purchases another 1 5 0 1 5 0 similar servers to enhance their IT performance. This type of scalability is called _ _ ? _ _...
-
Which technique involves modifying the OS kernel? Full Virtualization Paravirtualization Hardware - assisted virtualisation
-
is not a dynamic routing protocol Question 6 6 Answer a . . None of the above b . . OSPF c . . EIGRP d . . RIP
-
Write a Verilog module named alu corresponding to the diagram shown below. The module has a w-bit in- put B, a 2-bit input op, a clock input clk, and a w-bit registered output A. The module...
-
The National Company is evaluating one of the projects that it has been offered for investment. Note that the company must From investing $25,000 in the beginning until you can get the following...
-
Determine the volume of the parallelepiped of Fig. 3.25 when (a) P = 4i 3j + 2k, Q = 2i 5j + k, and S = 7i + j k, (b) P = 5i j + 6k, Q = 2i + 3j + k, and S = 3i 2j + 4k. P
-
What is a replacement chain? When and how should replacement chains be used in capital budgeting?
-
a. How would a firms decision to pay out a higher percentage of its earnings as dividends affect each of the following? (1) The value of its long-term warrants (2) The likelihood that its convertible...
-
What is the implied nominal interest rate on a Treasury bond ($100,000) futures contract that settled at 10016.0 (or 100-160)? If interest rates increased by 1%, what would be the contracts new value?
-
In the section of his 2007 letter to the shareholders of Berkshire Hathaway titled Fanciful FiguresHow Public Companies Juice Earnings, Warren Buffett referred to the investment return assumption...
-
Based on 2012 revenues, the six largest providers of oilfield services are: 1. Schlumberger Ltd. (NYSE: SLB) Revenues: $42.1 billion Net income: $5.5 billion 2. Halliburton (NYSE: HAL) Revenues:...
-
On 21 September 2000, Intel Corporation (NASDAQ -GS: INTC)3 issued a press release containing information about its expected revenue growth for the third quarter of 2000. The announced growth fell...
Study smarter with the SolutionInn App