User Account

All Pages

Compute the pi statistic for project x

Assignment Help Finance Basics
Reference no: EM132481309

Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent.

Time: 0 1 2 3 4 5  

Cash flow: -83 -83  0  118  93 68

  • 11.00, reject
  • 27.14, accept
  • 45.89, accept
  • 1.33, accept

Reference no: EM132481309

Questions Cloud

Estimate the overall project risk factor : Estimate the overall project risk factor for this undertaking and offer commentary as to the efficacy of the study tour to Elbonia.
What is the current value of a share of pauline : Pauline's Pet Shop has been around for a very long time and has had a constant growth of 3%. Investments similar to Pauline's are earning 4%.
Determine what are role of ethic and corporate governance : Determine What are the Role of ethics and corporate governance in the accounting industry What are possible courses of action?
Describe the importance of international capital structure : What risks can you identify when working with cash, credit and inventory management? Provide your rationale and any supporting data.
Compute the pi statistic for project x : Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of
What databases are available : Accounting standards related to your company or a specialized accounting dilemma, where would you look for authoritative guidance? What databases are available?
Discuss how the use of such statistical models : Discuss how the use of such statistical models could result in the actual losses being far greater than that predicted under the models.
Invest in corporate bonds : Your uncle would like to restrict his maturity and default risk, but he would still like to invest in corporate bonds. Which of the possible bonds listed below
How large your annual payment would be : Suppose you borrowed $50,000 at a rate of 4.5% and must repay it in 4 equal installments at the end of each of the next 4 years. How large your annual payment w

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the equivalent annual cost of each light bulb

which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 10 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb?

  What is the possible range for a correlation coefficient

What is the possible range for a correlation coefficient? What is Net Working Capital for 2012? What is it for 2011? What is the Change in Net Working Capital?

  Discuss in detail how to calculate net present value

Discuss in detail how to calculate net present value. Why profitability, as a result of a purchase, must equal or exceed cost of capital to be deemed worthy.

  Ow many shares of stock will be outstanding after the stock

The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?

  Estimate of the expected annual hpr

Using table 5.3 as a guide, what is your estimate of the expected annual HPR on the S&P 500 stock portfolio if the current risk-free rate interest rate is is 5%?

  Five applications for two positions

4-A company has five applications for two positions: two women and three men. Suppose that the five applicants are equally qualified and that no preference is given for choosing either gender.

  Present value of a perpetuity

A perpetuity pays $170 per year and interest rates are 6.7 percent. How much would its value change if interest rates increased to 9.2 percent?

  What is the variable cost per unit

A project has earnings before interest and taxes of $5,750, fixed costs of $50,000, a selling price of $13 a unit, and a sales quantity of 11,500 units. Depreciation is $7,500.

  What does it mean to smooth earnings across time

What does it mean to "smooth earnings across time"? How might a financial company practice this strategy, and why might it engage in this activity?

  What is the minimum level of earnings before interest

What is the minimum level of earnings before interest and taxes that the firm is expecting? Ignore taxes.

  Questions for the competitive footwear industry

Please answer the following questions for the competitive footwear industry that you are participating in as part of the BSG simulation for your DB post:

  What is the firm weighted average cost of capital

Mojito Mint company has a debt-equity ratio of .35. The required return on the company's unlevered equity is 12.8 percent, and the pretax cost of the firm's.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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