Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 19, 2023

A project has an initial outlay of $3,439. It has a single payoff at the end of year 5 of $8,441. What is the

A project has an initial outlay of $3,439. It has a single payoff at the end of year 5 of $8,441. What is the profitability index (PI) of the project, if the company's cost of capital is 11.48 percent? Round the answer to two decimal places.

Step by Step Solution

★★★★★

3.40 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

The profitability index PI is calculated by dividing the present value of future ca... blur-text-image

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

Practical financial management

Authors: William r. Lasher

5th Edition

0324422636, 978-0324422634

More Books

Students also viewed these Finance questions

Question

★★★★★

A project has an initial outlay of $1,675. It has a single cash flow at the end of year 6 of $5,337. What is the internal rate of return (IRR) for the project?

Answered: 1 week ago

Question

★★★★★

A project has an initial outlay of $19,302. The project will generate cash flows of $4,610 in Years 1-5. What is the profitability index (PI) of this project?

Answered: 1 week ago

Question

★★★★★

1) Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries? A) 9.0% B) 10.0% C) 4.0% D) 13.0%...

Answered: 1 week ago

Question

★★★★★

With a fixed cost of $100 per order, Nathan decided it was vital to get his money's worth. His monthly demand for energy drinks was 10,000 bottles and holding cost was estimated at 20% of unit cost....

Answered: 1 week ago

Question

★★★★★

How is cost-volume-profit analysis useful?

Answered: 1 week ago

Question

★★★★★

Most countries (with the exception of Canada, Colombia, the Dominican Republic, Mexico, and the United States) follow the ISO 216 standard for paper sizes. An A0 sheet has dimensions 841 1189...

Answered: 1 week ago

Question

★★★★★

Apply constructivist principles to classroom practice including using inquiry, problem-based learning, and cognitive apprenticeships.

Answered: 1 week ago

Question

★★★★★

On April 1, 2013, CMV Corp. issued $600,000, 5%, 5-year bonds at face value. The bonds were dated April 1, 2013, and pay interest annually on April 1. Financial statements are prepared annually on...

Answered: 1 week ago

Question

★★★★★

How Do i do programming project 1 in chapter 8 for problem solving and program design in C by hanly and koffman? its the hurrican database problem

Answered: 1 week ago

Question

★★★★★

A 1600 kg car is traveling over a hill that has a radius of curvature of 25 m. The car is slowing down as it goes over the hill. It slows down at a constant rate from a speed of 25 m/s to a speed of...

Answered: 1 week ago

Question

★★★★★

SHOW YOUR WORKING PLEASE 1. In practice, rms often price their products by 'marking up\". a xed percentage over (average) cost. To investigate the consequences of markup pricing, consider a single rm...

Answered: 1 week ago

Question

★★★★★

On January 22, Ireland Corporation issued for cash 33,000 shares of no-par common stock at $35. On February 14, Ireland issued at par value 4,000 shares of preferred 7% stock, $50 par for cash. On...

Answered: 1 week ago

Question

★★★★★

Problem 3 Complete the following perpetual inventory form. Perpetual Inventory Total Product Name: Purchase Unit Size: Carried Forward: Date In Out 1/7 3 Balance 1/9 2 1/10 1 1/12 5 1 1/15 2

Answered: 1 week ago

Question

★★★★★

Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders'...

Answered: 1 week ago

Question

★★★★★

Please prepare a presentation (ppt) based on the following descriptions- upload here General requirements: Topic: Introduction and analysis of Knowledge Managementpractice of Nokia. The presentation...

Answered: 1 week ago

Question

★★★★★

Find 1.Ownership structure 2.Headquarters, 3.Music Content, 4 Music Content type producers, 5 Example of music, For HBO Max, Netflix, Prime Video each Ques 2 Please find 1.Ownership structure...

Answered: 1 week ago

Question

★★★★★

Which of the following options would be appropriate to be defined as classes in a movie theater application? Question 1 6 options: Movie and MovieTheater Artist, MovieName, Actor and BuyTicket Actor,...

Answered: 1 week ago

Question

★★★★★

Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...

Answered: 1 week ago

Question

★★★★★

Use the information from the previous two problems. Calculate BWPs breakeven point in units and dollars, with and without the purchase of the new machine.

Answered: 1 week ago

Question

★★★★★

Griffin-Kornberg is reviewing the following projects for next years capital program. Projects A and B are mutually exclusive and so are Projects D and E. Griffin- Kornberg has a 9% cost of capital...

Answered: 1 week ago

Question

★★★★★

Summarize the effect of operating leverage on EBIT.

Answered: 1 week ago

Question

★★★★★

Drawing from your experiences and preferences, would perks and fringe benefits similar to those that Clif Bar offer be an effective motivator for you? Would the companys development and job...

Answered: 1 week ago

Question

★★★★★

The Ohio State University and University of Michigan two-dimensional leadership styles identified in the 1940s havent changed much over the years, as they are still being taught and used today....

Answered: 1 week ago

Question

★★★★★

Do you agree with Demings statement that U.S. companies need to change to a group approach to compete in a global economy?

Answered: 1 week ago

Previous Question Next Question