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Author Question: A project costs $12,000 and has a discount rate of 15%. Calculate the profitability index of the ... (Read 29 times)

formula1

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  • 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
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Marked as best answer by formula1 on Apr 25, 2021

blakeserpa

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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.
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formula1

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

ktidd

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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