Question 31 RWJ 9-8 MC Given the forecast cash flows of the Covina Donuts, what is the profitability index for assuming a discount rate of 14.50? Year Cash Flow 0 -$46,500 1 $12,200 2 $38,400 3 $11,300 Group of answer choices 0.97 1.06 0.93 1.02
Question 31 RWJ 9-8 MC Given the forecast cash flows of the Covina Donuts, what is the profitability index for assuming a discount rate of 14.50? Year Cash Flow 0 -$46,500 1 $12,200 2 $38,400 3 $11,300 Group of answer choices 0.97 1.06 0.93 1.02
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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Question 31
RWJ 9-8 MC
Given the
|
Year |
Cash Flow |
|
0 |
-$46,500 |
|
1 |
$12,200 |
|
2 |
$38,400 |
|
3 |
$11,300 |
Group of answer choices
0.97
1.06
0.93
1.02
Question 32
RWJ 9-1 MC
Maria is examining a graph that shows the NPVs of a technology project against different requiredrates of return . What is this graph called?
Maria is examining a graph that shows the NPVs of a technology project against different required
Group of answer choices
IRR profile
NPV profile
Project return vs risk profile
Project Rate of return profile
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VIEWStep 2: Computation of present value of cash inflows of year 1.
VIEWStep 3: Computation of present value of cash inflows of year 2.
VIEWStep 4: Computation of present value of cash inflows of year 3.
VIEWStep 5: Calculation of total Present value of cash inflows.
VIEWStep 6: Computation of Profitability Index.
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