Profitability index of Proposal B Answer 1 Payback period in years and months of Proposal B Answer 2 Rank the proposals based on Lowest Payback Period Answer 3 Profitability index of Proposal A Answer 4
There are two proposals of investment, the estimated financial data related to these proposal as following
|
|
Proposal A |
Proposal B |
|
Initial Investment |
$350000 |
$180000 |
|
|
$100000 |
$50000 |
|
Year 2 |
$120000 |
$50000 |
|
Year 3 |
$150000 |
$50000 |
|
Year 4 |
$90000 |
$50000 |
|
Year 5 |
$30000 |
$50000 |
|
Required Rate on return (RRR) |
10% |
10% |
All payment of inflows is at the end of accounting period while investment is paid at beginning of period,
Answer Below Questions
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Profitability index of Proposal B |
Answer 1 |
|
Payback period in years and months of Proposal B |
Answer 2 |
|
Rank the proposals based on Lowest Payback Period |
Answer 3 |
|
Profitability index of Proposal A |
Answer 4 |
|
Simple Rate on Return of Proposal A |
Answer 5 |
|
Payback period in years and months of proposal A |
Answer 6 |
|
Internal Rate on Return of Proposal B ( |
Answer 7 |
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PV of Cash inflow of Proposal B |
Answer 8 |
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Rank the proposals based on Highest Profitability Index |
Answer 9 |
|
|
Answer 10 |
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Discounted Payback period of proposal A |
Answer 11 |
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Discounted Payback period in years and months of Proposal B |
Answer 12 |
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Simple Rate on return of Proposal B |
Answer 13 |
|
Payback period of proposal A |
Answer 14 |
|
Payback period of Proposal B |
Answer 15 |
|
NPV of Proposal A |
Answer 16 |
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Rank the proposals based on Lowest Net Present Values (NPV) |
Answer 17 |
|
PV of Cash inflow Proposal A |
Answer 18 |
|
Discounted Payback period of Proposal B |
Answer 19 |
|
Discounted Payback period in years and months of proposal A |
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