FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC limited company looking to invest in one of the proposed projects. The cost of that project is $50,000 and cash inflows and outflows are

ABC limited company looking to invest in one of the proposed projects. The cost of that project is $50,000 and cash inflows and outflows are projected for 5 years, as shown in the below table. Calculate the Profitability Index of the Project using the given interest rate and the rate of 8%. The interest rate is 5%.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Crypto Finance Law And Regulation

Crypto Finance Law And Regulation

Authors: Joseph Lee

1st Edition

0367086611, 978-0367086619

More Books

Students also viewed these Finance questions

Question

★★★★★
Consider a binomial probability distribution with p = 0.35 and n = 8. Determine the following probabilities: a. Exactly three successes b. Less than three successes c. Six or more successes

Answered: 1 week ago

Question

★★★★★
The foreign earned income exclusion is allowed under IRC Section: 401 411 911 941

Answered: 1 week ago

Question

★★★★★
=+4.6. In a space of six equally likely points (a die is rolled) find three events that are not independent even though each is independent of the intersection of the other two.

Answered: 1 week ago

Question

★★★★★
A firm earns gross profit (profit not including the wage) of 100 from a low-ability worker and 200 from a high-ability worker. A quarter of the workers are low-ability and the rest are high-ability....

Answered: 1 week ago

Question

★★★★★
An automotive supply store sells a product that has a demand of 4 0 0 units per month. Its supplier charges an ordering cost of $ 6 0 per order and $ 2 5 per unit with a 2 0 % discount for orders of...

Answered: 1 week ago

Question

★★★★★
what is the dividend yield on a stock that is currently trading at$70 per share and is expected to pay a dividend of $2.21 per share over the next twelve months?

Answered: 1 week ago

Question

★★★★★
After researching the different forms of business organization, Natalie Koebel decides to operate "Cookie Creations" as a proprietorship. She then starts the process of getting the business running....

Answered: 1 week ago

Question

★★★★★
P. 6-1 The financial statements of an actual capital projects fund leave it to the report reader to draw inferences on key transactions. The accompanying statements of the parks, recreations, and...

Answered: 1 week ago

Question

★★★★★
An infinite solid circular cylinder is initially at a uniform temperature of 150 C. At time t = 0 the temperature around the entire boundary is suddenly reduced to 0C, and maintained thereafter....

Answered: 1 week ago

Question

★★★★★
6. Germs Co. revalued its building with historical cost of P40,000,000 and accumulated depreciation of P10,000,000 to a fair value of P48,000,000. Income tax rate is 30%. Requirements: a. Compute for...

Answered: 1 week ago

Question

★★★★★
In a report, 2-3 pages single-spaced, describe the purpose of the audit software and describe its capabilities.Provide at least two examples of how companies have used the software as it relates to...

Answered: 1 week ago

Question

★★★★★
Set out the main benefi ts and diffi culties in the concept of Employer Branding.

Answered: 1 week ago

Question

★★★★★
Analyse the concept of engagement and explain how organisations can increase their employees engagement levels.

Answered: 1 week ago

Question

★★★★★
Understand and utilise the technological aids to the selection process.

Answered: 1 week ago

Previous Question Next Question