User Account

All Pages

Compute the project profitability index for each investment

Assignment Help Accounting Basics
Reference no: EM131756869

Problem - Information on four investment proposals is given below:

 

Investment Proposal

 

A

B

C

D

Investment required

$(330,000)

$(40,000)

$(190,000)

$(2,380,000)

Present value of cash inflows

480,000

56,500

286,700

3,178,500

Net present value

$150,000

$16,500

$96,700

798,500

Life of the project

5 years

7 years

6 years

6 years

Required:

1. Compute the project profitability index for each investment proposal.

2. Rank the proposals in terms of preference.

Reference no: EM131756869

Questions Cloud

Describe and critique the speakers delivery : Describe AND critique the speakers delivery - write an analysis of the speech: content--what was the speaker's attention grabbing device
How may globalization or anti-globalization : How may globalization or Anti-globalization agenda affect your future in the job market?
Explain the theory of personality development : Identify any psychosocial conflicts that may be present and the transitions related to middle childhood that may be considered.
Discuss about the vietnam population : Population pyramids A population pyramid is a helpful graph for examining the distribution of a country's population. Here is a population pyramid for Vietnam.
Compute the project profitability index for each investment : Problem - Information on four investment proposals is given below: Compute the project profitability index for each investment proposal
What do you think is the topic of conversation : Deduce which nonverbal signals are responsible for showing emotion and feeling. Examine how these nonverbal signals help to explain what is going on.
Why do mearsheimer and walt claim : Why do Mearsheimer and Walt claim that the War in Iraq was unnecessary? Do you agree with the reasoning for them deeming the invasion unnecessary
How many minutes do study on a typical weeknight : How many minutes do you study on a typical weeknight? The figure below shows graphs of the student responses, in scrambled order and without scale markings.
How many calories do students consume per day : Choose a graph What type of graph or graphs would you make in a study of each of the following issues at your school? Explain your choices.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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