Question
1-What is the project profitability index for this project? (Refer to the Exhibit 11B-1 and Exhibit 11B-2 attached in the end of this assignment, to
1-What is the project profitability index for this project? (Refer to the Exhibit 11B-1 and Exhibit 11B-2 attached in the end of this assignment, to determine the appropriate discount factor(s) using table. Round your final answer to the nearest dollar amount.)
2-What is the projects payback period? (Round your answer to 2 decimal places.)
3-What is the projects simple rate of return for each of the five years? (Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34%.))
4-If the companys discount rate was 16% instead of 14%, would you expect the project's net present value to be higher than, lower than, or the same?
Same B. Lower C. Higher
5-If the equipments salvage value was $500,000 instead of $300,000, would you expect the projects payback period to be higher than, lower than, or the same?
A. Lower B. Same C. Higher
6-If the equipments salvage value was $500,000 instead of $300,000, would you expect the project's net present value to be higher than, lower than, or the same?
A. Higher B. Same C. Lower
could you please solve each Q with explanations ans steps?
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