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I need help finding the Profitability index for each project (D) using Excel

I need help finding the Profitability index for each project (D) using Excel

Essentials Of Investments
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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I need help finding the Profitability index for each project (D) using Excel

a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B e. $ $ 3.44 years 2.21 years 78,560.95 11,694.24 16.72 26.31 1.879 X 3.160 X Project A % %
Transcribed Image Text:a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B e. $ $ 3.44 years 2.21 years 78,560.95 11,694.24 16.72 26.31 1.879 X 3.160 X Project A % %
Consider the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 419,000 -$ 37,000 19,800 13,900 15,600 12,400 Year 0 1 2 3 4 47,000 59,000 76,000 534,000 The required return on these investments is 11 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose?
Transcribed Image Text:Consider the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 419,000 -$ 37,000 19,800 13,900 15,600 12,400 Year 0 1 2 3 4 47,000 59,000 76,000 534,000 The required return on these investments is 11 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose?
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