What is the relationship between NPV and profitability index (PI)?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
If the NPV is greater than zero the PI will be greater than one Both of the...View the full answer
Answered By
Charles Okinda
students should give all the instructions concerning the challenge that they face. they will get an immediate response because I am always online.
4.90+
753+ Reviews
1481+ Question Solved
Related Book For
Question Posted:
Students also viewed these Finance questions
-
What is the relationship between FIFO and clock page replacement algorithms?
-
What is the relationship between the $ price of paint and the gallon demand for this paint? A random sample of (price, quantity) data for 7 days of operation was obtained. Construct a plot and...
-
What is the relationship between a student's grade point average and the number of hours spent studying per week. How would this relationship be graphed?
-
Problem 3.3 Minimize the functional J(x()) = f sx (s) x (s) ds, = 1 sr (s) i (s) ds, 0 subject to the endpoint conditions x (0) = 0 and x (1) = 1.
-
Suppose that the joint distribution of X and Y is uniform over a set A in the xy-plane. For which of the following sets A are X and Y independent? a. A circle with a radius of 1 and with its center...
-
A loan is made to a company of $20,000, which is equal to :10,000 at the date of the loan during year 1. The loan is legally denominated in dollars. At the end of year 1, the loan is translated as...
-
The force P applied at joint D of the square frame causes the frame to sway and form the dashed rhombus. Determine the average normal strain developed in wire AC. Assume the three rods are rigid. P...
-
Giles Manufacturing uses a periodic inventory system and has the following transactions for the month of June 2015: Required: 1. Calculate ending inventory and cost of goods sold at June 30, 2015,...
-
Particle Q 1 = 3 . 2 mu C has a mass of 6 . 5 mu g , and particle Q 2 = 3 . 5 mu C has a mass of 7 . 6 mu g . The two - charges are initially separated by a distance of 2 . 4 cm . With charge Q 1...
-
Selected transactions from the journal of Eberle Inc. during its first month of operations are presented here. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at...
-
List two advantages of using NPV.
-
What are the advantages of the PI method of capital budgeting?
-
Why are adjusting journal entries made? When do companies make these entries?
-
a. What is the monthly payment for a home loan of \(\$ 554,000\) if the rate is \(4.75 \%\) and the time is 20 years? b. If you paid a \(20 \%\) down payment, what is the price of the home? c. What...
-
Use estimation to select the best response in Problems 7-24. Do not calculate. If your credit card balance is \(\$ 952\), you make a \(\$ 50\) payment, the APR is \(12 \%\), and the interest is...
-
Find the APR (rounded to the nearest tenth of a percent) for each of the loans described in Problems 39-42. Purchase a stereo for \(\$ 2,500\) at \(13 \%\) add-on interest for 2 years.
-
How has the role of the management accountant been reinvented in recent years ?
-
A payday loan provides short-term loans ranging from \(\$ 250\) to \(\$ 2,000\). In Problems 47-50, assume the cost of the loan is \(\$ 1.00\) per day per \(\$ 100\) borrowed until the loan is...
-
On 1st January 2017, Sincomed Company purchased three machines from the Chemical Machineries Ltd. under instalment payment system. The cash down price of each machine was 8,865. The total amount was...
-
When an electric field is applied to a shallow bath of vegetable oil, why do tiny bits of thread floating in the oil align with the field like compasses in a magnetic field?
-
Define the term EBDAT.
-
The Salza Technology Corporation successfully increased its top line sales from $375,000 in 2018 to $450,000 in 2019. Net income also increased as did the ventures total assets. You have been asked...
-
Define the term EBITDA.
-
Using the following information: a. The bank statement balance is $3,048. b. The cash account balance is $3,300. c. Outstanding checks amount to $755. d. Deposits in transit are $809. e. The bank...
-
Determine the average tax rate and the marginal tax rate for each of the following instances: Use the Tax Tables for taxpayers with taxable income under $ 1 0 0 , 0 0 0 and the Tax Rate Schedules for...
-
A machine was bought on 1 st January 2 0 1 7 for $ 1 2 , 0 0 0 . The policy is to depreciate the machine at 1 0 % on reducing balance method at the end of each year, ending on 3 1 st December....
Study smarter with the SolutionInn App