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

Question

1 Approved Answer

Hebron Souvenirs plans to invest in a new souvenir boutique. Hebron will invest $52,207. The total after tax cash flows are $26,255 for year 1.

image text in transcribed
Hebron Souvenirs plans to invest in a new souvenir boutique. Hebron will invest $52,207. The total after tax cash flows are $26,255 for year 1. $30,539 for year 2. $32,480 for year 3 and $27.549 for year 4. The required rate of return on the similar projects is 5.6 percent. Calculate the profitability index of the boutique. Round up your answer to two decimal places

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

Personal Finance

Personal Finance

Authors: E. Thomas Garman, Raymond Forgue

9th Edition

0618938737, 978-0618938735

More Books

Students also viewed these Finance questions

Question

★★★★★
Presently, H. Swank, Inc. does not use any financial leverage and has total financing equal to $1 million. It is considering refinancing and issuing $500,000 of debt that pays 5 percent interest and...

Answered: 1 week ago

Question

★★★★★
Suppose you want to estimate the mean GPA of all students at your school. You set up a table in the library asking for volunteers to tell you their GPAs. Do you think you would get a representative...

Answered: 1 week ago

Question

★★★★★
Why is it important to have a dream? (p. 49)

Answered: 1 week ago

Question

★★★★★
Why is having multiple health-care plans important for FedEx in slowing down increases in the cost of benefits?

Answered: 1 week ago

Question

★★★★★
Pizzeria Duo has current assets of $6943, fixed assets of $24847, current liabilities of $6279, and long-term debt of $8555. What is the value of Pizzeria Duo's Owners Equity? (Round to nearest penny...

Answered: 1 week ago

Question

★★★★★
16. [-/3 Points] DETAILS LARCALCETT 1 3.093. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER An electron cully controlled thenowat is programand to lower the timenature during the night automatically...

Answered: 1 week ago

Question

★★★★★
The following Trial Balance was taken from the books of Tom Toy at 31 December 2012. Purchases/Sales Inventory 1.1.2012 Wages Loan - R Driscoll Cash Premises ms Dr Cr $ 57,341 80,340 4,173 10,650 242...

Answered: 1 week ago

Question

★★★★★
(11) The CPF Payable account has an opening balance of $5,600, and the amount due to the CPF Board is being paid on the last day of the month.

Answered: 1 week ago

Question

★★★★★
Tom learned to ask questions in math class, but he never learned to ask questions in English or history class. The problem is that "asking questions" did not demonstrate A Generality B Technology C...

Answered: 1 week ago

Question

★★★★★
1. Precision Engineering Inc. (PEI) is a small manufacturer of precision tools used to construct research equipment for engineering departments at colleges and universities. It sells its two main...

Answered: 1 week ago

Question

★★★★★
Which of the following is most closely aligned with the concept of psychological safety? 1 point Leader is responsible for making the employee comfortable at all times. Leader ignores bad behavior in...

Answered: 1 week ago

Question

★★★★★
=+ Do you agree with the statement: Pay peanuts, get monkeys. Pay obscenely huge amounts, get obscenely greedy monkeys?106 Are executives being paid the market rate, or is some factor distorting the...

Answered: 1 week ago

Question

★★★★★
=+ Do they begin to heal the inherent conflict that exists between principals and agents?

Answered: 1 week ago

Question

★★★★★
=+5. Find another employee benefit program to compare to Timberlands. Which is better? Why?

Answered: 1 week ago

Previous Question Next Question