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Your firm has limited capital to invest and is therefore interested in comparing projects based on the profitability index (PI), as well as other measures.

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Your firm has limited capital to invest and is therefore interested in comparing projects based on the profitability index (PI), as well as other measures. What is the PI of the project with the estimated cash flows below? The required rate of return is 19.2%. Round to 3 decimals. Year 0 cash flow =820,000 Year 1 cash flow =140,000 Year 2 cash flow =380,000 Year 3 cash flow =400,000 Year 4 cash flow =480,000 Year 5 cash flow =370,000 Answer: What is the discount rate at which the following cash flows have a NPV of $0 ? Answer in %, rounding to 2 decimals. Year 0 cash flow =153,000 Year 1 cash flow =45,000 Year 2 cash flow =42,000 Year 3 cash flow =41,000 Year 4 cash flow =33,000 Year 5 cash flow =45,000 Year 6 cash flow =29,000 Answer: Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The board of directors wants to know the expected impact on shareholder wealth. Knowing that the estimated impact on sharehoider wealth equates to net present value (NPV), you use your handy calculator to compute the value. What is the project's NPV? Assume that the cash flows occur at the end of each year. The discount rate (i.e., required rate of return, hurdle rate) is 12.4%. (Round to nearest penny)

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