Question: The corp has a project costing $ 4 0 0 0 0 amd cash flows of 8 5 0 0 , 1 5 6 0

The corp has a project costing $40000 amd cash flows of 8500,15600, and 22700 for years 1-3. Based on profitability index rule should the project br accepted if discount rate is 9.5%?

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 Finance Questions!

Q:

Two functions, f and g, are related by the given equation. Use the numerical representation of f to make a numerical representation of g. g(x) = f(x) + 7 1 5 X f(x) 2 1 3 6 4 2 5 7 6 9

Q:

Construct a 90% confidence interval to estimate D from the following sample information. Assume the differences are normally distributed in thepopulation. 056291901 423323333 0285265765 323322313 ie...

Q:

Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are...

Q:

Question A2 (25 marks) Honest Diamonds Ltd (HD) is considering investing in a new project to extract diamonds from a newly found source located in caves in Australia. Inspectors were hired two (2)...

Q:

Question A2 (25 marks) Honest Diamonds Ltd (HD) is considering investing in a new project to extract diamonds from a newly found source located in caves in Australia. Inspectors were hired two (2)...

Q:

Question A2 (25 marks) Honest Diamonds Ltd (HD) is considering investing in a new project to extract diamonds from a newly found source located in caves in Australia. Inspectors were hired two (2)...

Q:

13-2 NPV with Normal Cash Flows Compute the NPV statistic for Project Y and indicate whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of...

Q:

Ivanhoe Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 14.59 percent. Year 0 1 SA WN 2 3 4 5...

Q:

Filter Corp. has a project available with the following cash flows: Year Cash Flow 0 $15,800 1 5,200 2 6,500 3 5,900 4 4,300 What is the project's IRR? 16.16% 14.92% 16.58% 15.54% 17.40% 2) There is...

Q:

Instructions Sylvie was so thrilled about introducing to the Get-A-Well Wishing Spa a Gharieni MLX Quartz massage table. She explained to Valerie how magical it was to feel the energy flow of the...

Q:

Determine the proper carrying value of the following inventoryitems. Replacement Sals Selling Normal Item Cost Cost Price Expenses Profit Product 561 Product 562 Product 563 Product 564 Product 565...

Q:

Which of the following statements is FALSE a. 1:1,000,000 is an example of a large-scale map, when comparedto 1:1,000 b. A map with fine resolution is probably a large-scale map c. Cartographic scale...

Q:

Let a n = 5 n 2 + 1 4 n 3 n 4 - 5 n 2 - 1 9 , b n = 5 3 n 2 Calculate the l i m i t . ( G i v e a n exact answer. Use symbolic notation and fractions where needed. Enter DNE i f the l i m i t does...

Q:

let Y=TR with the kpology Ty={VCR: R-QC}Ure let A= (R-Q)x (GQ). consider the product topologyon XxY. Find Int CA), Bel(A). ExtcA), A'

Q:

Q(a) Consider Fig. Ql in which an anchoring force required to hold the elliptical gate (F). The size of the elliptical gate is L x 0.7L, inclined with angle of B while the depth of water is h....

Q:

EX3. Solve the equation - x + 1 3 where x2. 4 |314

Q:

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Q:

Petrol claim. Assume that the monthly petrol claim (in dollars) made by a salesperson to their company can be modeled with N(1000, 105). An accountant is generally concerned if the monthly petrol...

Q:

More cereal. In Exercise 51 we poured a large and a small bowl of cereal from a box. Suppose the amount of cereal that the manufacturer puts in the boxes is a random variable with mean 16.2 ounces...

Q:

Management survey. A survey of 200 middle managers showed a distribution of the number of hours of exercise they participated in per week with a mean of 3.66 hours and a standard deviation of 4.93...