This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A project costs $12,000 and has a discount rate of 15%. Calculate the profitability index of the ... (Read 58 times)

formula1

  • Hero Member
  • *****
  • Posts: 666
on: Apr 25, 2021

Question 1

A firm is evaluating an investment proposal which has an initial investment of $5,000 and cash flows presently valued at $4,000. The net present value of the investment is
◦ -$1,000.
◦ $0.
◦ $1,000.
◦ $1.25.

Question 2

A project costs $12,000 and has a discount rate of 15%. Calculate the profitability index of the project that has cash flows of $2,500 in years 1 and 2, and $4000 in years 3 and 4.
◦ 0.75
◦ 0.98
◦ 1.08
◦ 1.14
◦ 1.28
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by formula1 on Apr 25, 2021

blakeserpa

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


formula1

  • Member
  • Posts: 666
Reply 2 on: Apr 25, 2021
Excellent

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Maximal Heart Rate Over Time Maximal Heart Rate Over Time
NCC MERP Index for categorizing medication errors. NCC MERP Index for categorizing medication errors.
NCC MERP Index for categorizing medication errors algorithm. NCC MERP Index for categorizing medication errors algorithm.
Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ... Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ...
How to calculate annuity when compounded quarterly (Part 2) How to calculate annuity when compounded quarterly (Part 2)
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Video: Wound Care

For a complete list of videos, visit our video library