Question

Suppose a company has proposed a new 5-year project. The project has an initial outlay of...

Suppose a company has proposed a new 5-year project. The project has an initial outlay of $205,000 and has expected cash flows of $39,000 in year 1, $44,000 in year 2, $50,000 in year 3, $63,000 in year 4, and $78,000 in year 5. The required rate of return is 13% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)

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
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $231,000 and has expected cash flows of $32,000 in year 1, $50,000 in year 2, $52,000 in year 3, $65,000 in year 4, and $72,000 in year 5. The required rate of return is 11% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $212,000 and has expected cash flows of $40,000 in year 1, $41,000 in year 2, $53,000 in year 3, $61,000 in year 4, and $74,000 in year 5. The required rate of return is 16% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $178,000 and has expected cash flows of $32,000 in year 1, $40,000 in year 2, $57,000 in year 3, $68,000 in year 4, and $74,000 in year 5. The required rate of return is 14% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)
Suppose a company has proposed a new 4-year project. The project has an initial outlay of...
Suppose a company has proposed a new 4-year project. The project has an initial outlay of $21,000 and has expected cash flows of $6,000 in year 1, $9,000 in year 2, $11,000 in year 3, and $13,000 in year 4. The required rate of return is 15% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $246,000 and has expected cash flows of $36,000 in year 1, $44,000 in year 2, $54,000 in year 3, $63,000 in year 4, and $74,000 in year 5. The required rate of return is 17% for projects at this company. What is the net present value for this project? (Answer to the nearest dollar.)
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $171,000 and has expected cash flows of $36,000 in year 1, $50,000 in year 2, $57,000 in year 3, $65,000 in year 4, and $77,000 in year 5. The required rate of return is 13% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $169,000 and has expected cash flows of $38,000 in year 1, $45,000 in year 2, $60,000 in year 3, $69,000 in year 4, and $77,000 in year 5. The required rate of return is 13% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)
Suppose a company has proposed a new 5-year project. The project has an initial outlay of...
Suppose a company has proposed a new 5-year project. The project has an initial outlay of $23,000 and has expected cash flows of $3,000 in year 1, $5,000 in year 2, $6,000 in year 3, $7,000 in year 4, and $8,000 in year 5. The required rate of return is 15% for projects at this company. What is the Payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)
A project has an initial outlay of $11351 and the profitability index of 1.12. The project...
A project has an initial outlay of $11351 and the profitability index of 1.12. The project is expected to generate equal free cash inflows in each of the next 5 years. What is the project's annual free cash inflow (to the nearest dollar) if its required rate of return is 8.08%?
If a project has an initial outlay of $41,000 and cash flows of $14,000 per year...
If a project has an initial outlay of $41,000 and cash flows of $14,000 per year for the next 5 years, what is the IRR of this project? (Answer to the nearest tenth of a percent, e.g. 12.3).