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please help with both 9. Using the cash flow values in the table below, calculate the Profitability Index (PI). Assume a discount rate of 9.9%.
please help with both
9.
Using the cash flow values in the table below, calculate the Profitability Index (PI).
Assume a discount rate of 9.9%.
Year | Cash Flow |
0 | -$39,000 |
1 | 6,978 |
2 | 13,000 |
3 | 9,000 |
4 | 11,000 |
5 | 7,497 |
HINT: First calculate the NPV.
Do not round intermediate values. Enter your answer as a number with 2 decimal places of precision
25.
For a typical firm, which of the following sequences is CORRECT? All costs (r's) are after taxes, and assume that the firm operates at its target capital structure.
a. | WACC > rd > rs > re. | |
b. | rs > re > rd > WACC. | |
c. | rd > re > rs > WACC. | |
d. | re > rs > WACC > rd. | |
e. | WACC > re > rs > rd. |
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