General Accounting A project has the following cash flows.Assume an interest rate of 14%. What is theProfitability Index (PI)?Year Cash Flow0-$8841$2242$2233$4184$394

Step 1: Define Profitability IndexThe profitability index (PI) is also termed the profit investment…

Answered: A project has the following cash flows.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider a project with the following cash flows: End of Year (n) Cash Flows ($)0 -$22,4001 4,5002 12,6703 14,7804 13,6505 11,4406 7,800(a) At an interest rate of 18%, what is the discounted payback period?(b) What is the discounted payback period if the interest rate is 0%?
A project has the following cash flows. What is the payback period? Year Cash Flow 0 −$10,000 1 1,800 2 3,600 3 5,000 4 6,000
The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%. Answer the following questions: Year Operating Cash Flow 0 -$20,000 1 $7,000 2 $8,000 3 $9,000 4 $4,000 b. What is the NPV of project 1?
What is the net present value of a project with the following cash flows if the required rate of return is 12 percent? YEAR CASH FLOW 0 -42,398 1 13,407 2 21,219 3 17,800
POD has a project with the following cash flows: Year Cash Flows 0 -$ 281,000 145,500 123 163,000 128,100 The required return is 8.3 percent. What is the profitability index for this project?
Consider cash flows Year 0: -6900 Y1: 1700 Y2: 2900 Y3: 2900 Y4: 3500 What is the profitability index for this project if the return is 10%
Consider an investment project with the following net cash flows: What would be the value of X if the project's IRR is 10%?
The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%. Year Operating Cash Flow 0 -$20,000 1 $7,000 2 $8,000 3 $9,000 4 $4,000 a. What is the payback period of project 1?
Refer to two projects with the following cash flows: Year Project A Project B 0 -$110 -$110 1 45 55 2 45 55 3 45 55 4 45 If the opportunity cost of capital is 11%, what is the profitability index for each project?
A project has the following cash flows: Year Cash Flows 0 $ 128,200 12 1 2 3 4 49,400 63,800 51,600 28,100 The required return is 8.7 percent. What is the profitability index for this project? Multiple Choice 1.142 1.003 .803 1.038
1. What is the net present value of a project with the following cash flows if the requiredrate of return is 12 percent? Year Cashflow 0 -$42,398 1 $13,407 2 $21,219 3 $17,800
There is a project with the following cash flows : Year Cash Flow 0 −$ 29,300 1 8,600 2 8,500 3 7,900 4 6,700 What is the payback period?

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A project has the following cash flows. Assume an interest rate of 14%. What is the Profitability Index (PI)? Year Cash Flow 0 -$884 1 $224 2 $223 3 $418 4 $394