FREE Trial

Suppose that you could invest in the following projects but have only $30,000 to invest. How would you make your

Question:

Suppose that you could invest in the following projects but have only $30,000 to invest. How would you make your decision and which projects would you invest in?

Suppose that you could invest in the following projects but
Transcribed Image Text:

Project Cost $ 8,000 11,000 9,000 7,000 NPV $4,000 7,000 5,000 4,000

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 81% (11 reviews)

One would compute the Profitability index for each o…View the full answer


answer-question
Answered By
tutor-profile-image
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field. matriculation in science topics; inter in computer science; bachelors in business and information technology _embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+ 11+ Reviews 14+ Question Solved
Related Book For  answer-question
Fundamentals of corporate finance

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: June 12, 2012 00:54:46
See More Questions

Students also viewed these Corporate Finance questions

Q:
Suppose that you could invest in the same projects as in the previous problem but have only $25,000 to invest. Which projects would you choose?
A:
The profitability indexes of the projects are A 1 50 B 1 64 C 1 56 D 1 57 Wi......
Q:
Suppose that you could pack neutrons (mass = 1.67 10-27 kg) inside a tennis ball (radius = 0.032 m) in the same way as neutrons and protons are packed together in the nucleus of an atom. (a)...
A:
a The neutrons packed into the tennis ball are like a giant spherical nucleus containing N neutrons......
Q:
You would like to invest in the following project. Year __________________Year Cash Flow 0.........................................$55,000 1.........................................$30,000...
A:
c Accept the project because the NPV is......
Q:
Find the equation for the lower half of the circle x + (y-8) = 7. Put the equation in the form y = g(x), and then enter g(x) into the answer box below. Enter your answer as a symbolic function of x,...
A:
The equation of the circle 2c y 3 7 can be written asi y......
Q:
Prescott Lumber processes logs into grade A and grade B lumber. Logs cost $19,200 per load. The milling process produces 6,000 units of grade A with a market value of $44,800, and 18,000 units of...
A:
Total cost 19 200 8 192 27 392 a Allocation on the basis of units of output Grade A 6 000 x 27......
Q:
Refer to the data in Exercise 616. Assume that Minneapolis sales by major market are: The company would like to initiate an intensive advertising campaign in one of the two market segments during the...
A:
1 and 2 The profit impacts in both markets are as follows Medical Dental Increased sales 40 000 35......
Q:
Bunch and Johnson (2000) gave the following three different definitions of the optimal exercise price of an American put. 1. It is the value of the asset price at which one is indifferent between...
A:
Click to View...
Q:
On January 1, 2013, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual...
A:
BRADLEY RECREATIONAL PRODUCTS Bond issue Bond issue term years Bond issue interest rate Bond annual......
Q:
Make connections between financial literacy and wealth management.
A:
i Financial literacy and wealth manag......
Q:
Valu-Com Electronics manufactures five different models of telecommunications interface cards for personal and laptop computers. As summarized in the following table, each of these devices requires...
A:
a HyperLink FastLink SpeedLink MicroLink EtherLink b Quantity Made 500 1000 1500 2250 500 Minimum Re......
Q:
If you were interested in calculating the probability that your project will have a positive FCF, what type of risk analysis tool will you most likely use?
A:
Sensitivity analysis can only manage a single movement in a modeled variable and can......
Q:
Micks Soft Lemonade is starting to develop a new product for which the cash fixed costs are expected to be $80,000. The projected EBIT is $100,000, and the Accounting DOL is expected to be 2.0. What...
A:
Accounting DOL 1 FC D A......
Q:
On January 1, 2011, Jessica Marie Company sold equipment to Gwang Ju Company for 20,000,000 Korean won, with payment to be received in two years on January 1, 2013. The exchange rate on January 1,...
A:
2011 Jan 1 Won Receivable 20 661 Sales 20 661 Present value of receivable 20 000 000 won 800 25 000......
Q:
While we often think of stress as an experience, we also hold beliefs about stress itself. What is this belief called? a. Stress beliefs b. Stress cognitions c. Stress responses d. Stress mindsets
A:
The detailed answer for the above question is provi......
Q:
Emily was glued to the TV trying to escape from the reality of the news of Covid in March 2020. She noticed that all the messages in the TV ads reflected various brands espousing that they are here...
A:
DESCRIPTION This is describing a phenomenon in advertising called COVID 19 advertising response In March 2020 when the COVID 19 pandemic started to impact people s lives significantly many brands and......
Q:
Which savings account is your choice? Why? Your wealthy Uncle Boris has given you $80,000. However, he insists that you wait for 5 years to claim any money. In the meantime, it will accrue interest...
A:
I would choose the savings account with continuous compounding This is because continuous compoundin......
Q:
An enduring aspect of the self that includes a sense of membership in an ethnic group, along with attitudes and feelings related to that membership, is called Blank______. Multiple choice question....
A:
The detailed answer for the above question is provided below bicultu......
Q:
The process of object-oriented design, which one is not included (a) activities to design the system architecture, (b) identify objects in the system, (c) describe the design using different object...
A:
The detailed answer for the above question is provided below The correct choices are 1 The process o......
Q:
The vector 9i + qj is parallel to the vector 2i j. Find the value of the constant q.
A:
Two vectors are parallel if they have the same direction o......
Q:
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
A:
NO2 mass 46 01 DH 137 kJ 92 3......
Q:
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 34 percent, what is the after tax...
A:
Input Area Bond Coupon Rate Price Quote Maturity Face value 1 6 00 105 86 5 y......
Q:
Berta Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, and Treasury...
A:
Input Area Beta 1 25 Dividend per share 0 40 Growth rate 5 0 Market return 12 0......
Q:
Trower Corp. has a debtequity ratio of .90. The company is considering a new plant that will cost $110 million to build. When the company issues new equity, it incurs a flotation cost of 8 percent....
A:
Input Area Debt to equity ratio 0 90 Projected......
F9F Cougar In Detail And Scale Volume 2 1st Edition - ISBN: 978-1707530373 - Free Book