Question

12. Avago Technologies Ltd has a project with initial investment requiring $-180,000 and the following cash flows will be generated because of the project: $45,000; $59,000; $46,000; and $60,000 respectively at the end of each year for the next four years. If the required rate of return is 0.08, find the Profitability Index (PI) of the project.

Group of answer choices

1.86 years

none of the answers is correct

0.70 years

1.89 years

0.96 years

Answer #1

QEP Resources has a project with initial investment requiring
$-55,000 and the following cash flows will be generated because of
the project: $13,750; $55,000; $64,000; and $64,000 respectively at
the end of each year for the next four years. If the required rate
of return is 0.15, find the future value of these cash flows.

A project has an initial investment of $203,700 and will
generate 5 annual cash flows of $59,800.
Assume a cost of capital of 15.1 %
Calculate the profitability index (PI).
The present value of the cash inflows is
$___.
(Round to the nearest cent.)
The profitability index is ___.
(Round to two decimal places.

A project requires an initial cash outflow of $6,900, and it
will bring in cash inflows of $3,200, $1,100, $1,100, $1,200, for
the next four years, respectively. What is this project’s the
profitability index (PI), given a discount rate of 14%?

A project has the following total (or net) cash flows.
__________________________________________
Year Total
(or net) cash flow
_________________________________________
1 $20,000
2 30,000
3 50,000
4 60,000
_________________________________________
The required rate of return on the project is 15 percent. The
initial investment (or initial cost or initial outlay) of the
project is $80,000.
a) Find the net present value (NPV) of the project.
b) Find the profitability index (PI) of the project.
c) Calculate the modified internal rate...

An independent project has a net investment of $270,000, and
generates net cash flows of $92,000 for 5 years. The required rate
of return in 10%. Compute the Profitability index.
Group of answer choices
1.87
1.07
1.43
1.29

please provide explanation
A project with an initial cost of $31,200 is expected to provide
cash flows of $11,700, $12,300, $15,400, and $9,900 over the next
four years, respectively. If the required return is 8.2 percent,
what is the project's profitability index?

7,
A project with an initial cost of $29,800 is expected to provide
cash flows of $9,600, $10,900, $14,000, and $8,500 over the next
four years, respectively. If the required return is 8.3 percent,
what is the project's profitability index?
Multiple Choice
.843
.989
1.335
1.088
1.187

1. A project has an initial outlay of $1,732. The project will
generate annual cash flows of $783 over the 4-year life of the
project and terminal cash flows of $258 in the last year of the
project. If the required rate of return on the project is 4%, what
is the net present value (NPV) of the project? Note: Enter your
answer rounded off to two decimal points. Do not enter $ or comma
in the answer box.
2.A...

Profitability Index
A project has an initial cost of $73,575, expected net cash
inflows of $14,000 per year for 9 years, and a cost of capital of
8%. What is the project's PI? Do not round your intermediate
calculations. Round your answer to two decimal places.

Profitability Index
A project has an initial cost of $55,075, expected net cash
inflows of $15,000 per year for 12 years, and a cost of capital of
8%. What is the project's PI? (Hint: Begin by constructing
a time line.) Do not round intermediate calculations. Round your
answer to two decimal places.

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