A project has an initial outlay of $3,798. It has a single payoff at the end of year 7 of $9,684. What is the profitability index (PI) of the project if the company's cost of capital is 14.18 percent?
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- A project has an initial outlay of $2,182. It has a single payoff at the end of year 9 of $6,947. What is the net present value (NPV) of the project if the company’s cost of capital is 10.20 percent?Consider a project with an initial investment (today, t = 0) of $225,000. This project will generate cash flows of $68,750 per year for the next 6 years. The company will pay $50,000 to another for clean-up and disposal in Year 6. What is the Profitability Index (PI) of the project if shareholders demand 8.25% return? Answer in whole numbers, rounded to three decimal places.Consider a project with an initial investment (today, t = 0) of $200,975. This project will generate cash flows of $49,500 per year for the next 8 years, at which time (end of Year 8) the company will pay $50,000 to another for clean-up and disposal. What is the Profitability Index (PI) of the project if shareholders demand a 16.295% return? Answer with a number rounded to three decimal places, e.g., 4.0877% should be entered as 4.088.
- A project has a NPV of 15,000 when the cutoff rate is 10%. The annual cash flows are 20,505 on an investment of 50,000. What is the profitability index?Vu Trading Company is evaluating a project that has the estimated cash flows given here. The cost of capital is 14%. What is the project’s NPV? b. What is the profitability index? Year 0 1 2 3 4 Cash flow −100,000 30,000 30,000 60,000 60,000A project has an initial cost of...accounting questions
- Your company is considering a capital project that will require a net initial investment of $244,978. The project is expected to have a 7- year life and will generate an annual net cash inflow of $40,860. Using the present value tables, what is the internal rate of return? (Round answers to O decimal places, e.g. 25.) Click here to view the factor table. Internal Rate of Return %What is the project's payback period on these financial accounting question?Assume a firm takes on a project that requires an initial investment in year 0 of $42,000. assume that the project creates a NOPAT of $4,900 in year 1. If the weighted average cost of capital for this project is 10% what's the EVA for this project for year 1?
- A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Year Cash Flow 0 -26,000 1 11,000 2 11,000 3 11,000A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: -$25,000 today (t=0); $11,000 after one year (t=1), 17,000 after two years (t=2); and 10,000 after three years (t=3). What is the Internal Rate of Return (“IRR”) for this project?GTO Incorporated is considering an investment costing $214,720 that results in net cash flows of $32,000 annually for 10 years. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) (a) What is the internal rate of return of this investment? (b) The hurdle rate is 8.5%. Should the company invest in this project on the basis of internal rate of return? a. Internal rate of return b. Should the company invest in this project on the basis of internal rate of return? %