Question

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

Answer #1

**Answer:- 1.29**

**Explanation:-**

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...

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

You are considering building a shopping mall. The initial
investment is ?$1.43. million. The cash flows are?$410,000
for year? 1,200,000 for year?2, $200,000 for year? 3, and
?$170,000 for year 4. What are the net present value? (NPV) and
profitability index? (PI) of the project if the cost of capital is
12?%? Compute the internal rate of return? (IRR) for the
project.

Consider the following
cash flows for two mutually exclusive capital investment projects.
The required rate of return is 16%. Use this information for the
next 3 questions.
Year Project A Cash
Flow Project B Cash
Flow
0
($50,000)
($20,000)
1
15,000
6,000
2
15,000
6,000
3
15,000
6,000
4
13,500
5,400
5
13,500
5,400
6
6,750
5,400
What is the
profitability index of project B?
Group of answer choices
1.09
1.01
.94
1.06
1.03
then calculate the net present...

A project generates cash flows of $125k, $125k, and $95k. The
required rate of return is 10%.
The highest price that a firm/investor will pay for this project
is_____. Hint: The price of the project is the same as the
investment cost.

What is the profitability index for an investment with the
following cash flows: -46,500; 12,200; 38,400; 6,300, given a 14.5
percent required return?
Group of answer choices 0.949 0.992 1.021 1.035 1.093

An investment project generates after-tax cash flows of $5,000
per year for the next 10 years. Suppose the payback period for the
project is 5 years and the appropriate discount rate is 15 percent.
What is the initial cost of the project?
a. $25,000 b. $32,167 c. $30,000 d. $16,761
Please provide the formula you used and numbers you plugged in
to get the answer.

project that requires an initial investment of $100,000 and
generates the following cash flows:
YEAR
CASH FLOWS
1
30,000
2
35,000
3
40,000
4
20,000
5
19,000
If the cost of capital is 8.5% have a discounted payback period
of _______________
Seleccione una:
3.856 years
2.875 years
3.665 years
2.856 years
3.875 years
not enough data to answer

A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.

A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.

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