What is the profitability index for the set of cash flows if the relevant discount rate...
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What is the profitability index for the set of cash flows if the relevant discount rate is 11% ? (Do not round intermediate calculation: Round the final answer to 3 decimal places.) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 16 % ? (Do not round intermediate calculation Round the final answer to 3 decimal places.) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 23% ? (Do not round intermediate calculation Round the final answer to 3 decimal places.) Profitability index Year 0123 Cash Flow -$ 19,000 11,300 10, 200 6.700 An investment has an installed cost of $529,800. The cash flows over the four-year life of the investment are projected to be $219,850, $236,450, $203,110, and $151,820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV $1 If the discount rate is infinite, what is the NPV? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ At what discount rate is the NPV just equal to zero? (Round the final answer to 2 decimal places.) IRR What is the profitability index for the set of cash flows if the relevant discount rate is 11% ? (Do not round intermediate calculation: Round the final answer to 3 decimal places.) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 16 % ? (Do not round intermediate calculation Round the final answer to 3 decimal places.) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 23% ? (Do not round intermediate calculation Round the final answer to 3 decimal places.) Profitability index Year 0123 Cash Flow -$ 19,000 11,300 10, 200 6.700 An investment has an installed cost of $529,800. The cash flows over the four-year life of the investment are projected to be $219,850, $236,450, $203,110, and $151,820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV $1 If the discount rate is infinite, what is the NPV? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ At what discount rate is the NPV just equal to zero? (Round the final answer to 2 decimal places.) IRR
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To calculate the profitability index we need to divide the present value of the cash flows by the initial investment Lets calculate the profitability ... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781259654756
10th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway
Posted Date:
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