Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 25, 2023

What is the profitability index of a project that costs $8,000 and provides cash flows of $2,600 in years 1 and 2 and $4,600 in

What is the profitability index of a project that costs $8,000 and provides cash flows of $2,600 in years 1 and 2 and $4,600 in years 3 and 4? The discount rate is 8%.

Step by Step Solution

★★★★★

3.49 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

Profitability index is the matrix which is used to f... 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

Financial Reporting Financial Statement Analysis and Valuation

Authors: Clyde P. Stickney

6th edition

324302959, 978-0324302967, 324302967, 978-0324302950

More Books

Students also viewed these Finance questions

Question

★★★★★

What is the profitability index of a project that costs $10,000 and provides cash flows of $3,000 in years 1 and 2 and $5,000 in years 3 and 4? The discount rate is 10%.

Answered: 1 week ago

Question

★★★★★

A rectangular glass plane (height 10 cm, breadth 8 cm, and thickness = 0.2 cm) rests with the largest face flat on the surface of the water. Calculate the additional force required to pull the plane...

Answered: 1 week ago

Question

★★★★★

Origami Company is a price-taker and uses target pricing. Please refer to the following information: How much is the target full cost in total for the year? A) $1,440,000 B) $10,500,000 C)...

Answered: 1 week ago

Question

★★★★★

Two wheels A and B have masses m A and m B and radii of gyration about their central vertical axes of k A and k B respectively. If they are freely rotating in the same direction at A and about the...

Answered: 1 week ago

Question

★★★★★

Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families. All stores are located in...

Answered: 1 week ago

Question

★★★★★

16. Forward Interest Rates (LO3, CFA3) According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2020? What is the corresponding...

Answered: 1 week ago

Question

★★★★★

The total distance, in miles, that a taxi driver drives during a day is a continuous random variable with density function (i) Verify that this function satisfies properties DF1 and DF2 so that it is...

Answered: 1 week ago

Question

★★★★★

A producer of computeraided design software for the aerospace industry receives numerous calls for technical support. Tracking software is used to monitor response and resolution times. In addition,...

Answered: 1 week ago

Question

★★★★★

There are three assets listed under current assets cash, accounts receivable, and inventory. Cash has a balance of $15,200. Sales was $1,530,000 and cost of goods sold was $657,000 for the year. The...

Answered: 1 week ago

Question

★★★★★

On December 1, Year 1, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and...

Answered: 1 week ago

Question

★★★★★

Question 2 (40 points) - Consumer and Producer Theory Assume that consumers derive utility from consuming public transporta- tion and a household basket (which includes food, clothes, etc.). The...

Answered: 1 week ago

Question

★★★★★

In the same way that classical economic theory models false assumptions about rational man, the CSR and sustainability debate, for the most part, models equally false assumptions about ______ man....

Answered: 1 week ago

Question

★★★★★

Jeffrey was 54 years old when he was hired as a disc jockey by Luke. Two years later, as Luke's business was failing, Jeffrey was laid off by Luke. Jeffrey learns that a few weeks after he left, he...

Answered: 1 week ago

Question

★★★★★

The brief 3-minute read introduces us to the Korean understanding of "Maum" (Mind). The reading is offered to stimulate thoughts and discussion on how culture impacts the creation of culture-specific...

Answered: 1 week ago

Question

★★★★★

Case Study Jean Davis is a 19-year-old woman who is experiencing difficulties in college. She moved out of the dorm because she thought other students were out to ruin her life. Her former roommate...

Answered: 1 week ago

Question

★★★★★

1. Main Entry: Within the body of post, clearly identify each segment of the required response in order to facilitate discussion development. a. Early impressions: Another UMGC Psychology student...

Answered: 1 week ago

Question

★★★★★

I can't get the result from the CSV file python question I posted. I followed the procedures yet I'm not getting the desired result. My question is where do I insert my CSV file? Is it in this...

Answered: 1 week ago

Question

★★★★★

What are the principal alloying elements in SAE 4340 steel?

Answered: 1 week ago

Question

★★★★★

Firms often enter into trans actions that are peripheral to their core operations but generate gains and losses that must be reported on the income statement. A gain labeled "peripheral" by one firm...

Answered: 1 week ago

Question

★★★★★

For each year, a large majority - averaging approximately 85 percent - of the revenues reported by Starbucks are generated from specialty coffees and other products sold in company-operated stores....

Answered: 1 week ago

Question

★★★★★

Selected data for General Mills for Year 2, Year 3, and Year 4 appear below (amounts in millions): Required a. Compute the rate of return on common shareholders' equity (ROCE) for Year 2, Year 3, and...

Answered: 1 week ago

Question

★★★★★

An economics quiz contains six multiple-choice questions. Let x represent the number of questions a student answers correctly. a. Is x a continuous or discrete random variable? b. What are the...

Answered: 1 week ago

Question

★★★★★

The Employee Benefit Research Institute (EBRI) issued a news release (Saving in America: Three Key Sets of Figures) on October 25, 2005. In 2005, about 69% of workers said they have saved for...

Answered: 1 week ago

Question

★★★★★

The U.S. Census Bureau (Annual Social & Economic Supplement) collects demographics concerning the number of people in families per household. Assume the distribution of the number of people per...

Answered: 1 week ago

Previous Question Next Question