Consider the following cash flows:YearCash Flow0-$ 29,20012314,50014,40010,800a. What is the profitability index for the cash flows if the relevant discount rate is 12 percent?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.b. What is the profitability index if the discount rate is 17 percent?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.c. What is the profitability index if the discount rate is 24 percent?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.a. Profitability indexb. Profitability indexc. Profitability index

Calculate the profitability index for part (a) through (c) using Excel as follows:Formula…

Answered: Consider the following cash flows: Year…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A perpetuity-immediate has annual payment of t*t-2, for t = 1, 2, 3, ... If the present value of this sixth and %3D seventh payments are equal, find the present value of the perpetuity.
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What is the internal rate of return (IRR) of the following set of cash flows? (Enter your answer as a percentage rounding to 2 decimals, e.g., 12.34% as 12.34) Year O cash flow = -146,000 Year 1 cash flow = -32,000 Year 2 cash flow= 60,000 Year 3 cash flow = 70,000 Year 4 cash flow = 53,000 Year 5 cash flow = 65,000
es Consider the following cash flows: Year Cash Flow 0 -$ 29,900 1 13,800 2 3 15,100 11,500 a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. b. What is the profitability index if the discount rate is 13 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 20 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index T
Consider the following cash flows: Year 01234 Cash Flow -$5,100 1,500 2,600 1,300 1,000 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payback period years
What is the future value in year 5 of the following cash flows given a discount rate of 10%? Year 2 4 5 Cash Flow $844 $653 $987 (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
1. Discounted Payback (DCPB) and IRR analysis. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 8.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -5500 +1500 2 +1800 3 +1500 4 +1800 5 6 +1500 +1800 7 +1500
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Calculate the NPV of the following cash flows using a 10% discount rate? The first cashflow is negative, Year 0= -900, all others are positive Year 1= +100, Year 2= +100, Year 3= +400, Year 4= +500, Year 5= +500 a. $36 b. $ 520 c. $ 996 d. $ 326 e. $ 226
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Different cash flow. Given the cash inflow in the following table. what is the present value of this cash flow at 8%, 11%, and 23% discount rates? What is the present value of this cash flow at 8% discount rate? (Round to the nearest cent.) What is the present value of this cash flow at 11% discount rate? (Round to the nearest cent.) What is the present value of this cash flow at 23% discount rate? (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1: Year 2: $1,500 $8,000 Years 3 through 7: $0 Year 8: $30,000 -X
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