esConsider the following cash flows:YearCash Flow0-$ 29,900113,8002315,10011,500a. 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 indexb. Profitability indexc. Profitability indexT

a. Discount Rate = 8%Present Value (Year 0) = -$29,900 (Initial Investment)Present Value (Year 1) =…

Answered: es Consider the following cash flows:…

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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Consider the following cash flows: Year Cash Flow 0 −$ 29,000 1 14,700 2 14,200 3 10,600 What is the profitability index for the cash flows if the relevant discount rate is 10 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 15 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 22 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Compute the present value of a $240 cash flow for the following combinations of discount rates and times: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. r=12%, t=8 years b. r=12%, t=16 years c. r = 6%, t= 8 years d. r=6%, t=16 years Present Value
Single Cash Flow Present Value Inputs Single Cash Flow $1,000 Discount Rate/Period 6% Number of Periods 5 Present Value using a Time Line Period 1 2 3 4 Cash Flows Present Value of Each Cash Flow Present Value Present Value using the Formula Present Value Present Value using the PV Function Present Value
Consider the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 8,000 2,250 5,300 2,050 1,750 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period years M Prev 1 of 5 Next > tubi
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Consider the following cash flows: Year 0 1 2 Cash Flow -$ 32,500 13,800 17,900 11, 200 What is the IRR of the cash flows? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Internal rate of return %
For the given cash flow, Which of the following statements is correct? Year 1 3 +2,000 -500 -8,100 +6,800 Select one: a. There are two interest rate b. The present worth converts in sign from positive to negative two times C. Non-conventional cash flow d. all the above %24
Year Cash Flow 0 -$ 17,400 1 9,700 8,600 5,100 2 3 a. What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 16 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 23 percent? (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
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