1. Using the equation of Profitability Index from Chapter 16, indicate if the following project should be accepted or rejected. PVin = 21,050.52 PVout = 23,966.71

Accept

Make no-decision

Reject

2. Using the equation of Profitability Index from Chapter 16, indicate if the following project should be accepted or rejected. PVin = 21,050.52 PVout = 7,071.35

Reject

Accept

Make no-decision

3. Net Present Value = $1,918,555.58 - $1,904,182.46 = $14,373.12 Should the investor accept or reject the project? .

Make no-decision

Accept

Reject

4. A savings bond with a face value of $1000 bearing interest at 7% payable semi-annually matures on November 1, 2025. What is the age of the bond on August 1, 2030?

5 years

3 months

4.75 years

4.3 years