Question
*SIDE NOTE: EXPLAIN THE CALCULATION AND DO NOT USE EXEL. THANKS* Company Green is want to do a investment assessment and has calculated the following
*SIDE NOTE: EXPLAIN THE CALCULATION AND DO NOT USE EXEL. THANKS*
Company Green is want to do a investment assessment and has calculated the following NPV,net present values, including the basic investment, 3 option below evaluated: alternative 1 with NPV = 100,000 dollarswhere the basic investment amounts to 45,000, dollars alternative 2 with NPV = -15,000 dollar where the basic investment amounts to 25,000 dolllars alternative 3 with NPV = 150,000 dollars where the basic investment amounts to 75,000 dollars Company Green wants to supplement its data by calculating profitability per invested Dollar via Profitability Index (PI). Calculate the Profitability Index (PI) and rank the machines via PI and NPV respectively. explain the calculation. b) Discuss differences and similarities between the PI and NPV methods and the respective methods advantages and disadvantages seen in the above situation. The course i am studying is finance and investment.
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