What is the profitability index of the proposed project if the
discount rate is 6%?
Year...
What is the profitability index of the proposed project if the
discount rate is 6%?
Year 0 CF = -$20,000
Year 1 CF = $3,000
Year 2 CF = $4,000
Year 3 CF = $5,000
Year 4 CF = $6,000
Year 5 CF = $7,000.
Options:
A) 1.63
B) 2.03
C) 1.03
D) 0.03
Consider the following
cash flows for two mutually exclusive capital investment projects.
The required rate of...
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...
No need to show work, Will thumbs up fast.
1.) What is the net present value...
No need to show work, Will thumbs up fast.
1.) What is the net present value of a project that has an
initial cost of $40,000 and produces cash inflows of $8,000 a year
for 11 years if the discount rate is 15 percent?
Group of answer choices
$798.48
$1869.69
$1240.23
$2470.01
2.) The Chicken Basket is considering a project with an initial
cost of $20,000. The project will produce cashflows of: $6,700 in
year 1, $6,300 in year 2,...
A project will generate $4,000 in 1 year, $5,000 in 2 years, and
$7,000 in 3...
A project will generate $4,000 in 1 year, $5,000 in 2 years, and
$7,000 in 3 years. After year 3, the amount will grow at 4% per
year forever (so in year 4, the project generates $7,280). The
annual rate for discounting is 12%. What is the present value of
these cash flows? Group of answer choices
59,772
60,425
69,801
77,312
80,115
none of the above
Your company is considering the following projects:
0
1
2
3
4
Project 1
-10,000
0 ...
Your company is considering the following projects:
0
1
2
3
4
Project 1
-10,000
0
0
10,000
5,000
Project 2
-7,000
0
4,000
4,000
4,000
Project 3
-3,000
0
5,000
Projects 1, 2 and 3 require 5, 25, and 20 additional engineers,
respectively. If the company can allocate only 40 employees to this
expansion, which project/projects should the company take?
I am not given a discount rate for this question.
Your company is considering the following projects:
0
1
2
3
4
Project 1
-10,000
0 ...
Your company is considering the following projects:
0
1
2
3
4
Project 1
-10,000
0
0
10,000
5,000
Project 2
-7,000
0
4,000
4,000
4,000
Project 3
-3,000
0
5,000
If the expansion budget is limited at $12 million, which
project/projects should the company take?
a.
Project 3
b.
Projects 2 & 3
c.
Project 1 and 3
d.
Project 2
I am not given a discount rate for this question.
Year
Cash Flow
0
−$9,400
1
4,000
2
5,700
3
3,300
&nb
Year
Cash Flow
0
−$9,400
1
4,000
2
5,700
3
3,300
a. What is the profitability index for the
cash flows if the relevant discount rate is 8 percent?
1.228
1.252
1.133
1.157
1.193
b. What is the profitability index for the
cash flows if the relevant discount rate is 19 percent?
0.994
1.024
1.044
0.944
0.964
c. What is the profitability index for the
cash flows if the relevant discount rate is...
Given the following end of year cash flows (CF) estimate the
internal rate of return (IRR)...
Given the following end of year cash flows (CF) estimate the
internal rate of return (IRR) of this project. If the project’s
cost of capital is 10%, would you undertake this project?
Timeline 0 1 2 3 4 CF 0 700 700 700 -3,000
Group of answer choices
No; IRR = 18.93%
Yes; IRR = 18.93%
No; IRR = 7.50%
Yes, IRR is greater than the cost of capital
Year:
Project A Project
B Project
C Product
D Project E
Year:
Project A Project
B Project
C Product
D Project E
0
(10,000) (15,000)
(20,000) (50,000) (100,000)
1
4,000 8,000
7,000 10,000 33,000
2
4,000 6,000
7,000 15,000 40,000
3
4,000 4,000
7,000 (5,000) 33,000
4
------ 2,000
7,000
20,000 40,000
5
------ -----
------ 10,000 (10,000)
6
------
------
------ (1,000)
------
1. Calculate the payback of each project.
2. Calculate the discounted payback of each project (assume a
cost-of-capital of 10 percent).
3. Calculate the NPV of each project (again, assume 10
percent).
4. Calculate the PI of each project (again, assume...