Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 13, 2024

WLKY INC. is analyzing a project that requires an initial investment of 10,000$ followed by cash inflows of $1000 in year 1, $4000 in year

WLKY INC. is analyzing a project that requires an initial investment of 10,000$ followed by cash inflows of $1000 in year 1, $4000 in year 2 and $15,000 in year 3. The cost of capital is 10%. What is profitability index of the project.

Step by Step Solution

★★★★★

3.49 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the profitability index PI of a project you divide th... 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

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

More Books

Students also viewed these Finance questions

Question

Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @...

Answered: 1 week ago

Question

★★★★★

The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a...

Answered: 1 week ago

Question

★★★★★

The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a...

Answered: 1 week ago

Question

★★★★★

From The Secret: "The secret is great leaders SERVE." "Am I a self-serving leader or a serving leader?" How can you be a serving leader in your current position as an employee, student, or team...

Answered: 1 week ago

Question

★★★★★

Consider the M/M/1 queueing theory model that was discussed in Sec. 17.6 and Example 2, Sec. 20.1. Suppose that the mean arrival rate is 5 per hour, the mean service rate is 10 per hour, and you are...

Answered: 1 week ago

Question

★★★★★

The following selected transactions are from Springer Company. 2015 Nov. 1 Accepted a $4,800, 90-day, 8% note dated this day in granting Steve Julian a time extension on his past-due account...

Answered: 1 week ago

Question

★★★★★

What other requirements do they have for admission?

Answered: 1 week ago

Question

★★★★★

Bright Sparks Electrical - Bank Register Report: Now that you have completed the journals for the month, you need to prepare the Bank Register Report in the template below. Not all general journals...

Answered: 1 week ago

Question

★★★★★

according to the text, the NPV rule states that An investment should be accepted if the net present value is positive and rejected if it is negative. what does an NPV of zero mean? if you were a...

Answered: 1 week ago

Question

★★★★★

Create a "General Ledger T-Accounts" using the information from the "General Journal" below. General Journal Date Description Debit Credit Dec. Cash $ 65,000.00 Common stock $ 65,000.00 ( To record...

Answered: 1 week ago

Question

★★★★★

In first-order predicate logic, what is a Herbrand theorem? Question 4Answer a. A statement that is provable from the axioms of first-order predicate logic b. A statement that is true in some...

Answered: 1 week ago

Question

★★★★★

Which distribution is similar to the shape of a survival function, which is often used in engineering to indicate the time it takes an object to fail? Which distribution is similar to the shape of a...

Answered: 1 week ago

Question

★★★★★

New Bedford Company manufactures laptop computers. They are considering buying the hard drives for the laptops rather than manufacturing them. The costs to manufacture the hard drives for each laptop...

Answered: 1 week ago

Question

★★★★★

After invoicing a regular customer, PaintPros realizes that it billed the customer for prep work that was supposed to be free per the estimate. How should a credit memo be created for this customer?...

Answered: 1 week ago

Question

★★★★★

The 9-percent-coupon-rate bonds of the Melbourne Mining Company have exactly15 years remaining to maturity. The current market value of one of these $1,000-parvaluebonds is $700. Interest is paid...

Answered: 1 week ago

Question

★★★★★

Download the Sharjeh cement(SCIDC) historical dividends values (at least 5 years). As I understood from 2020 untill now there was not any dividend Calculate the EPS, PE ratio, dividend pay-out ratio...

Answered: 1 week ago

Question

★★★★★

Find the velocity, acceleration, and speed of a particle with the given position function. r(t) = (t 2 , sin t - t cos t, cos t + t sin t), t > 0

Answered: 1 week ago

Question

★★★★★

An item is sold for $35 at a store in Brandon, Manitoba and for $47.50 at a store in Selkirk, Manitoba. If the store in Brandon offers a discount of $5.50 on this item, what rate of markdown should...

Answered: 1 week ago

Question

★★★★★

Anna sells earrings at her store for $45.20 per pair. Her overhead expenses are $6 per pair and she makes 40% operating profit on selling price. a. What is her amount of markup per pair of earrings?...

Answered: 1 week ago

Question

★★★★★

Anil's operating profit is 35% on selling price for the cameras that he sells at his store. He purchases them for $145 per camera and has a markup of $82 per camera. Calculate the break-even price....

Answered: 1 week ago

Previous Question Next Question