NPV and the Profitability Index If we define the NPV index as the ratio of NPV to
Question:
NPV and the Profitability Index If we define the NPV index as the ratio of NPV to cost, what is the relationship between this index and the profitability index?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (17 reviews)
Since the NPV i...View the full answer
Answered By
Usman Nasir
I did Master of Commerce in year 2009 and completed ACCA (Association of Chartered Certified Accountants) in year 2013. I have 10 years of practical experience inclusive of teaching and industry. Currently i am working in a multinational company as finance manager and serving as part time teacher in a university. I have been doing tutoring via many sites. I am very strong at solving numerical / theoretical scenario-based questions.
4.60+
16+ Reviews
28+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Define key performance indicator (KPI). What is the relationship between KPIs and a companys objectives? Select a company of any size with which you are familiar. List at least four examples of...
-
What is the relationship between a Gross box office revenue other movie-related parameters How does this relationship vary across different years?
-
What is the relationship between FIFO and clock page replacement algorithms?
-
As shown in Fig. 4.60, a horizontal beam is hinged to the wall at point A. The length of the beam is 1 = 2 m and it weighs W = 150 N. Point C is the center of gravity of the beam and it is...
-
Consider the system shown in FIGURE 9-35. Assume that after the string breaks the ball falls through the liquid with constant speed. If the mass of the bucket and the liquid is 1.20 kg, and the mass...
-
Visit the website for the Malcolm Baldrige National Quality Award (MBNQA) at www.quality.nist.gov, and answer the following questions: a. How did the MBNQA come into existence? b. Why would...
-
Which of the following terms describe the types of adjusting entries? a. Deferrals and depreciation b. Expenses and revenues C. Deferrals and accruals d. Prepaid expenses and prepaid revenues
-
Pat Colt is auditing the financial statements of Manning Company. The following is a summary of the uncorrected misstatements that Colt has identified during the last three years. These misstatements...
-
Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a...
-
An article that appeared in the British Medical Journal (2010) presented the results of a study conducted by researcher Jeremy Groves, whose objective was to determine whether the type of frame of...
-
MIRR Slow Ride Corp is evaluating a project with the following cash flows: The Company uses a 10 percent interest rate on all of its projects. Calculate the MIRR of the project using all three...
-
Cash Flow Intuition A project has an initial cost of 1, has required return of R, and pays C annually for N years. a. Find C in terms of l and N such that the project has a payback period just equal...
-
Ethical Consideration. How does societys concern for the environment affect a companys facility location and layout?
-
It Hold your upper arm vertical and your lower arm horizontal with your hand palm-down on a table, as shown in Figure P8.14. If you now push down on the table, you'll feel that your triceps muscle...
-
An investor has \($100,000\) to invest in a business venture, or she can earn 10 percent/year with a \($100,000\) certificate of deposit for 4 years. Three possible business ventures have been...
-
In Section 4.6, we considered the demand for edible chicken, which the U.S. Department of Agriculture calls "broilers." The data for this exercise are in the file newbroiler. a. Using the 52 annual...
-
According to Modigliani and Millers Proposition II without taxes: A. the capital structure decision has no effect on the cost of equity. B. investment and the capital structure decisions are...
-
Hicham El Guerrouj of Morocco holds the world record in the 1500 m running race. He ran the final 400 m in a time of 51.9 s. What was his average speed in mph over the last 400 m? A. 14.2 mph B. 15.5...
-
Name some characteristics that allow you to observe light diffraction.
-
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
-
You are considering whether you should go out to dinner at a restaurant with your friend. The meal is expected to cost you $40, you typically leave a 20% tip, and an Uber will cost you $5 to get...
-
A bank offers your firm a revolving credit arrangement for up to $75 million at an interest rate of 1.58 percent per quarter. The bank also requires you to maintain a compensating balance of 4...
-
Oceanic Transport, Inc., has a cash cycle of 38 days, an operating cycle of 53 days, and an inventory period of 29 days. The company reported cost of goods sold in the amount of $325,000 and credit...
-
Piano Man, Inc., has a 40-day average collection period and wants to maintain a minimum cash balance of $15 million, which is what the company currently has on hand. The company currently has a...
-
If cluster membership is determined by examining the squared distance of each respondent's position from the initial cluster centers, list the respondents assigned to initial Cluster#1 (5 points) ...
-
A tall pitot-static tube is mounted through and 1.5-mabove the roof of a performance car such that it senses thefreestream flow. Estimate the static, stagnation, and dynamicpressure sensed at 325 kph...
-
How does the perception of organizational justice affect employee motivation and job satisfaction, and what can organizations do to promote a sense of fairness and equity ?
Study smarter with the SolutionInn App