A project has initial investment

Assignment Help Financial Management
Reference no: EM131916596

A project has an initial investment of $199,000 and will generate 5 annual cash flows of $61,900. Assume a cost of capital of 14.6 %. Calculate the profitability index? (PI). The present value of the cash inflows is ?$nothing. ?(Round to the nearest? cent.) The profitability index is nothing. ?(Round to two decimal? places.)

Reference no: EM131916596

Questions Cloud

What is the project expected rate of return for next year : Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. what is the project's expected rate of return for the next year
Level of domestic investment in a country falls : If the level of domestic investment in a country falls, while the level of private and public saving remains unchanged, then the net inflow of financial capital
Perfected security interest : Nemo has a prize bull named Cyclops. If Hector does have a security interest, is it a perfected security interest?
Raleigh market for designer handbags : Suppose that the demand per week in the Raleigh market for designer handbags is:
A project has initial investment : A project has an initial investment of $199,000 and will generate 5 annual cash flows of $61,900.
Market portfolio-What is cadbury cost of debt : The expected return on the market portfolio is 9.75%. What is Cadbury's cost of debt (after minus-tax)?
Firm managers should select projects whose cash flows : When evaluating a? project, a? firm's managers should select projects whose cash flows
What did the transportation revolution involve : What did the transportation revolution involve? What was its most important development?
How assessment address organizational psychological issues : Describe the major presenting problems, any potential legal issues that may come into play with the selected scenario, and suggest an empirically supported.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the share price estimate of intrinsic value of sam

Boston Beer Company [SAM] had Free Cash Flow to the Firm last year (year 0) of $17,573,700. What is the share price estimate of the intrinsic value of? SAM?

  Eight year bond pays an annual coupon

A 8-year bond pays an annual coupon, its YTM is 7%, and it currently trades at a premium. Which of the following statements is CORRECT?

  Capital structure have on firms profit-return on equity

Seattle Health Plans currently uses zero debt financing. Its operating profit is $1 million, and it pays taxes at a 40 percent rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity. What impact would the new c..

  Should the project be accepted or rejected

Compute the NPV for Project M if the appropriate cost of capital is 8 percent. Should the project be accepted or rejected?

  Calculate standard deviation of returns for each stock

BAF 301 - Introduction to Financial Management Calculate the expected rate of return for each stock separately and calculate the expected rate of return for the portfolio and calculate the standard deviation (s) of returns for each stock separately.

  Discuss the tools we can use to assess project-level risk

Discuss the tools we can use to assess project-level risk and how we can use this information in our capital budgeting activities. Calculate the after-tax cost of debt Interest rate of 10%; tax rate of 35%. Round your answer to two decimal places.

  What is the yield to maturity of the bonds

Springfield Nuclear Energy Inc. bonds are currently trading at $1,639.76. The bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 10 years. What is the yield to maturity of the bonds?

  Research the rate of home equity loans

Research the rate of home equity loans at a local bank or credit union and at an on-line lender. Which one seems most favorable?

  What is the future value of your windfall in three years

You have just received a windfall from an investment made in a friend's business. He will be paying you $10,000 at the end of this year, $20,000 at the end of the following year, and $30,000 at the end of the year after that (three years from today)...

  What are the effects of adoption ifrs in saudi arabia

Which method would be more beneficial to a business leader in Saudi Arabia GAAP OR IFRS?? What is the difference?

  Determine the outcome of the hedge

On May 31, the APCO bonds were priced at 82 3/4. The September futures price was 76 14/32. Determine the outcome of the hedge.

  Profit margins and turnover ratios

Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find between a grocery chain such as Safeway and a steel company? Think particularly about the turnover ratios, the profit margin, and the Du P..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd