Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

A project has an initial outlay of $1,262. It has a single payoff at the end of year 8 of $7,370. What is the profitability

A project has an initial outlay of $1,262. It has a single payoff at the end of year 8 of $7,370. What is the profitability index (PI) of the project, if the companys cost of capital is 5.48 percent? Round the answer to two decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Sustainability Proceedings From The Finance And Sustainability Conference Wroclaw 2017

Authors: Agnieszka Bem, Karolina Daszy?ska-?ygad?o , Ta?ána Hajdíková, Péter Juhász

1st Edition

3319922270,3319922289

More Books

Students also viewed these Finance questions

Question

★★★★★

In Fig. 4-50 the switch in the legacy end domain on the right is a VLAN-aware switch. Would it be possible to use a legacy switch there? If so, how would that work? If not, why not?

Answered: 1 week ago

Question

★★★★★

AFW Industries has 194 million shares outstanding and expects earnings at the end of this year of $686 million. AFW plans to pay out 63% of its earnings in total, paying 35% as a dividend and using...

Answered: 1 week ago

Question

★★★★★

5.8 If the government collects a $1 specific tax, what share of the tax is paid by consumers and firms in each of the following cases? Explain why. (Hint: See Q&A 2.3. Depending on the shape of the...

Answered: 1 week ago

Question

★★★★★

Side Kicks has year-end account balances of Sales Revenue $808,900; Interest Revenue $13,500; Cost of Goods Sold $556,200; Administrative Expenses $189,000; Income Tax Expense $35,100; and Dividends...

Answered: 1 week ago

Question

★★★★★

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight-line to zero over its...

Answered: 1 week ago

Question

★★★★★

6. Rhodas Bakery uses a process cost accounting system. It has the following baking department data for the month of June: Work in Process Inventory-Bake, Beginning $19,000 Work in Process...

Answered: 1 week ago

Question

★★★★★

During 2024, its first year of operations, Pave Construction provides services on account of $160,000. By the end of 2024, cash collections on these accounts total $110,000. Pave estimates that 25%...

Answered: 1 week ago

Question

★★★★★

For a function for 50 guests you require 8.500 kg of trimmed lamb. Trimmings are 20 %. How much lamb do you need to order from stores? Provide your answer to 3 decimal places) Also consider the...

Answered: 1 week ago

Question

★★★★★

An investment universe of the following risky assets with a dependence structure (correlation) is given. Use the ready appropriate formulae from Portfolio Optimisation Lecture. Asset A 0.02 0.05 1...

Answered: 1 week ago

Question

★★★★★

The Richmond Company is contemplating the acquisition of a higher capacity automatic presser machine. The new machine would cost P 1,920,000 and has an estimated life of eight years with no salvage...

Answered: 1 week ago

Question

★★★★★

The Fielder manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 7,850 machine...

Answered: 1 week ago

Previous Question Next Question