Question

Year Number 0 1 2 3 4

Year 2010 2011 2012 2013 2014

Net Cash Flows -8,182,700 2,219,900 2,561,200 3,457,600 4,425,300

Cumulative Cash Flows -8,182,700 -5,962,800 -3,401,600 56,000 4,481,300

Discounted Cash Flows -8,182,700 1,905,078 1,886,263 2,185,263 2,400,271

Cumu. Discounted Cash Flows -8,182,700 -6,277,622 -4,391,359 -2,206,050 194,221

Target Rate Of Return : 16.525%

What is the Profitability Index (PI)?

What is the Payback Period (PP)?

What is the Discounted Payback Period (DPP)?

Please show your work, so I can understand where your final answer came from.

Answer #1

Compute the Paasche Price Index for the years 2011, 2012 and
2013 using 2010 as your base period. b) Compute the Laspeyres Price
Index for the years 2011, 2012 and 2013 using 2010 as your base
period.
Year
Item
Price
Quantity
2010
1
2.75
11
2010
2
0.85
48
2010
3
1.33
19
2011
1
2.98
8
2011
2
0.89
53
2011
3
1.32
27
2012
1
3.10
8
2012
2
0.95...

Many factors influence the retail price of gasoline. Suppose the
following table shows the average retail price for a gallon of
regular grade gasoline for each year from 2011 through 2014. (Round
your answers to one decimal place.)
Year
Average Price
($)
2011
3.526
2012
3.608
2013
3.515
2014
3.368
(a)Use 2011 as the base year and develop a price index
for the retail price of a gallon of regular grade gasoline over
this four-year period.
2011 price index=____?_____
2012...

The following information is from General Electric Corporation
annual reports.
YearRevenue ($ million)Employees
Year
Revenue ($ million)
Employees (000)
2004
134
298
2005
152
302
2006
157
316
2007
168
323
2008
177
336
2009
183
324
2010
150
297
2011
147
290
2012
147
300
2013
146
308
2014
149
302
2015
151
326
Compute a simple index for the number of employees for GE using
the period 2004−06 as the base. (Round your answers to 1
decimal place.)...

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4...

XYZ stock price and dividend history are as follows:
Year
Beginning-of-Year Price
Dividend Paid at Year-End
2010
$ 124
$ 4
2011
$ 135
$ 4
2012
$ 115
$ 4
2013
$ 120
$ 4
An investor buys six shares of XYZ at the beginning of 2010,
buys another two shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all seven remaining shares at...

Telesis Corp is considering a project that has the
following cash flows:
Year
Cash Flow
0
-$1,000
1
400
2
300
3
500
4
400
The company’s weighted average cost of capital (WACC) is
10%. What are the project’s payback period (Payback), internal rate
of return (IRR), net present value (NPV), and profitability index
(PI)?
A.
Payback = 3.5, IRR = 10.22%, NPV = $1260, PI=1.26
B.
Payback = 2.6, IRR = 21.22%, NPV = $349, PI=1.35
C.
Payback =...

XYZ stock price and dividend history are as follows:
Year Beginning-of-Year Price Dividend Paid at Year-End
2010 $120 $3
2011 $145 $3
2012 $115 $3
2013 $120 $3
An investor buys six shares of XYZ at the beginning of 2010,
buys another two shares at the beginning of 2011, sells one share
at the beginning of 2012, and sells all seven remaining shares at
the beginning of 2013.
a. What are the arithmetic and geometric average time-weighted
rates of return...

Year
Consumer Price Index
Percentage Increase
2007
207.3
2008
215.3
2009
214.5
2010
218.1
2011
224.9
2012
229.6
2013
233.0
2014
236.7
2015
237.0
The following table gives the value of the consumer price index
for 2007 through 2015.
What was the inflation rate in 2008? ________________
What was the inflation rate in 2012 ___________________
What was the percentage increase of the average price level
from 2007 to 2015?__________
Inflation was highest in__________ and lowest in
__________year

Your company is considering an
expansion into a new product line. The project cash flows are as
follows:
Year
Project A
0
-$60,000
1
44,000
2
20,000
3
14,000
The
required return for this project is 10%.
What is the NPV for the project?
What is the IRR for the project?
What...

Sam Steward is a freelance Web page designer. His yearly wages
for the years 2009 through 2014 are listed below. An industry index
for computer programmers that reports the rate of wage inflation in
the industry is also included. This index has a base of
1998.
Year
Wage ($ thousands)
Index (1998 = 100)
2009
$175
148.3
2010
175
140.6
2011
150
120.9
2012
120
110.2
2013
120
105.3
2014
130
105.0
(a) Compute...

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