The net present value for Proposals X and Y has been calculated on the basis of the data given below.   Proposal X Proposal Y Amount to be invested $145,000   $280,000   Total present value of net cash flow 172,000   320,000   Net present value 27,000   40,000   Determine the present value index for each proposal. Round your answers to two decimal places.   Present Value Index Proposal X $fill in the blank 1 Proposal Y $fill in the blank 2

Q: Question Five: for an investment project which is shown its payment details in Figure (2), it is…

A: i 20%   Year Cash Flow Out Flow Cash Flow in Flow 0  $20,000.00   1  $  5,000.00  $  8,000.00…

Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round…

A: IRR refers to the internal rate of return.It is the rate at which net present value for a project is…

Q: Consider two mutually exclusive projects A and B: Project Cash Flows (dollars) NPV at 12% CO C 0 C1…

A: Project AProject BC0-$35,500-$55,500C1$25,400$38,500C2$25,400$38,500NPV@12%$7,427$9,567

Q: Present value index Tasty Doughnuts has computed the net present value for capital expenditure at…

A: Determine the answers for parts (a) and (b) using Excel as follows:Formula sheet:Note:To understand…

Q: Proposal Number 1 2 3 4 Investment Required P8,000 P12,000 P10,000 P4,000 Net Present Value P3,200…

A: NPV: - Net Present value is the difference between the present cash inflows and the present value of…

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A: Here, Cost of Capital is 9% Cash Flows are as follows:

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A: The NPV is the tool or method for evaluating investment proposal where the net discounted benefits…

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow…

A: YearCash flow (A)Cash flow…

Q: Information on four investment proposals is given below: A Investment required Net present value. $…

A: Profitability index = Present value of cash inflows / Initial investmentHigher the profitability…

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A: The objective of this question is to calculate the profitability index (PI) for two proposed capital…

Q: Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two…

A: The payback Period represents the period in which the initial cost of investment of a project is…

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A: Solution:- Minimum Acceptable Rate of Return (MARR) or cost of capital is the rate of return…

Q: Information on four investment proposals is given below: Investment required Present value of cash…

A: SOLUTION  : -1.  Calculation of the profitability index for each investment proposal : -…

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A: In the field of investing and fund management, carried interest is frequently employed. It is a…

Q: 5

A: Part a: The Present Value Index of a project is given by: Present Value Index (PVI) = Total PV of…

Q: Calculate the profitability index for the below projects and indicate your order of choices. Project…

A: Project APresent Value = $145,000Investment = $95,000Project B Present Value = $135,000Investment =…

Q: What is the profitability index of a project that costs $10,000 and provides cash flows of $3,200 in…

A: The PI of a project refers to the measure of the attractiveness of the project by finding the ratio…

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow…

A: Capital budgeting in finance provides tools that help evaluate the profitability of long-term…

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A: Profitability Index  = (NPV + Initial Investment ) / Initial Investment    NPV can be calculated by…

Q: Project E Time: 1 2 3 4 5 Cash flow -$1,500 $550 $630 $620 $400 $200 IRR

A: IRR also known as Internal Rate of Return is the return which is expected internally means this…

Q: 2. Compute the NPV of each project assuming the cost of capital is 10 percent. Note: Round your PV…

A: The payback period is the length of time required to recover the initial investment of a project.…

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year 67234 Cash…

A: As per the guidelines, the solution for the first three sub parts will be provided. If you want the…

Q: Please use the following table to answer subsequent questions. Assume 7% cost of capital for both…

A: A modified rate of return is used to determine whether the project would be selected or not.

Q: ompute the MIRR statistic for Project I if the appropriate cost of capital is 12 percent. (Do not…

A: Modified internal rate of return (MIRR) is one of the capital budgeting techniques that helps the…

Q: Compute the PI statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not…

A: Calculation of Profitability Index (PI):The profitability index (PI) is 0.85.Excel Spreadsheet:

Q: characteristics similar to the firm's average project. Bellinger's WACC is 10%. 0 1 2 3 4 Project A…

A: The net present value (NPV) method estimates how much a potential project will contribute to…

Q: PI statistic for Project Z

A: PI stands for profitability index and refers to the measurement of the project by dividing the…

Q: Profitability index of Proposal B Answer 1 Payback period in years and months of Proposal B Answer…

A: Profitability Index  = Present Value Cash inflow / Present Value Cash outflow

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects:     Year Cash…

A: The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an…

Q: (a) For a MARR of 9%, compute the net present worth for each project, and determine the…

A: Period Project- A Project- B Project- C 0  $        (150)  $        (120)  $          150 1…

Q: Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value…

A: Provided Information for Investment ProposalsInitial Investment: $92,000 for all proposalsCash Flow…

Q: Please round to 4 decimals, very important. Consider the following projects: Project A CO is ?$4,100…

A: Given: Year Cash flow 1 3440 2 3728 Initial Investment 4100

Q: Please correct answer and don't use hand rating

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A: Present value index = Total present value of net cash flow/Amount to be invested

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A: Part 2: Explanation:Step 1: Calculate the present value index for each proposal.The present value…

Q: Based on the information of four investment proposals, rank the proposals in terms of NPV index.…

A: Net Present Value(NPV) is the aggregate sum today’s worth of all cash flows where cash flows…

Q: Compute the IRR statistic for Project F. The appropriate cost of capital is 12 percent. Note: Do not…

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A: Payback period  is the time required to recover the initial investment in the project. Accounting…

Q: Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two…

A: Note: No information such as depreciation and cost of capital on the project is provided, Net Income…

Q: Consider the following two mutually exclusive projects: Cash Flows ($) Project Co C1 C2 C3 C4 C5 -50…

A: The internal rate of return(IRR) is the rate at which the present value of future cash flow is equal…

Q: Consider the following two mutually exclusive projects: Year 0 1 2 3 Cash Flow (X) -$30,000 13,700…

A: > Given data:YearCashflow(X)Cashflow(Y)0-30000-30000113700156002142001220031340013300

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: To calculate the Profitability Index (PI) for each project, we need to use the following formula:…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.