Question

What is the profitability index of a project with the following cash flows if the discount...

What is the profitability index of a project with the following cash flows if the discount rate is 10 percent? Year CFs 0 -802 1 761 2 497 3 376

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the profitability index for the following set of cash flows if the relevant discount...
What is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? What if the discount rate is 15 percent? If it is 22 percent? Year Cash Flow 0 -16,700 1-9,700 2 -7,800 3 - 4,300
Based on the profitability index rule, should a project with the following cash flows be accepted...
Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 15 percent? Why or why not? (i.e. Calculate the profitability index (PI) and explain why the project should or should not be accepted.) Year: 0,1,2,3 Cash Flow: -32100, 11,800, 0, 22,600
Year Cash Flows 0 -67334 1 30908 2 31393 3 31036 What is the profitability index...
Year Cash Flows 0 -67334 1 30908 2 31393 3 31036 What is the profitability index for the set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))
Profitability index. Given the discount rate and the future cash flow of each project listed in...
Profitability index. Given the discount rate and the future cash flow of each project listed in the following​ table, use the PI to determine which projects the company should accept. What is the PI of project​ A? What is the PI of Project B?     Cash Flow Project A Project B   Year 0 −​$2,000,000 −​$2,300,000   Year 1 ​$600,000 ​$1,150,000   Year 2 ​$700,000 ​$1,050,000   Year 3 ​$800,000 ​$950,000   Year 4 ​$900,000 ​$850,000   Year 5 ​$1,000,000 ​$750,000   Discount rate 5​% 16​%
Given the following cash flows. A profitability index equal to 1.164615 A12% discount rate. Estimate the...
Given the following cash flows. A profitability index equal to 1.164615 A12% discount rate. Estimate the initial outlay and the MIRR. Years CFt 0 XXX,000? 1 $275,000 2 $275,000 3 $275,000 4 $275,000 5 $275,000 6 $0 7 ($150,000)
Year Cash Flows 0 -17189 1 11331 2 9978 3 6764 What is the profitability index...
Year Cash Flows 0 -17189 1 11331 2 9978 3 6764 What is the profitability index for the set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))
Year Cash Flows 0 -18265 1 11583 2 9838 3 6164 What is the profitability index...
Year Cash Flows 0 -18265 1 11583 2 9838 3 6164 What is the profitability index for the set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))
Based on the profitability index (PI) rule, should a project with the following cash flows be...
Based on the profitability index (PI) rule, should a project with the following cash flows be accepted if the discount rate is 8%? Why Year or why not? Cash Flow $18,600 S10,000 I$7,300 I$3,700 2 yes,because the Pl is 1.008 yes; because the Pl is 0.992. yes; because the Pl is 0.999 no; because the Pl is 1.008 no because the Pl is 0,992
Year Cash Flow 0 −$9,100 1 5,300 2 5,700 3 4,900 a. What is the profitability...
Year Cash Flow 0 −$9,100 1 5,300 2 5,700 3 4,900 a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent? b. What is the profitability index for the cash flows if the relevant discount rate is 19 percent? c. What is the profitability index for the cash flows if the relevant discount rate is 23 percent? Please be very specific in where you found each number
What´s the probability index (PI) for the following set of cash flows if the relevant discount...
What´s the probability index (PI) for the following set of cash flows if the relevant discount rate is 18%. 0. year = 50 000$ (initial investment) 1.year = 18 000$ 2.year = 17 500$ 3. year = 18 500$ Is this project feasible or not according to PI?