Firm is evaluating project-what is the profitability index

Assignment Help Financial Management

Reference no: EM13814705

A firm is evaluating a project which will cost $10,269 today and provide cash flows in years 1, 2, and 3 of $7,560, $3,286, $3,268 and, respectively. The firm’s discount rate is 8%. What is the profitability index?

a. 1.21

b. 0.86

c. 1.46

d. 0.99

e. 1.58

Reference no: EM13814705

Questions Cloud

Describe three specific roles that the railroad industry : Describe three specific roles that the Railroad industry played in building factories and cities between 1877 and 1920. How did the railroad strikes of 1877 affect the reconstructed nation?

Packet sniffers and employee privacy rights : Recall our previous lecture about the TPEDs problem in intelligence analysis. One of the hopes for addressing the issue rests with the development of technology to improve the efficiency of tasking, processing, exploitation, and dissemination

Set up a confidence interval for x-bar : Include histogram of data and set up a confidence interval for x-bar

Identify the current crimes and criminal issues : Identify the current crimes and criminal issues that impact the criminal justice system on a global basis

Firm is evaluating project-what is the profitability index : A firm is evaluating a project which will cost $10,269 today and provide cash flows in years 1, 2, and 3 of $7,560, $3,286, $3,268 and, respectively. The firm’s discount rate is 8%. What is the profitability index?

Describe an important problem faced by society today : Describe an important problem faced by society today. Provide your own analysis of the problem in terms of each of the elements of thought as defined by Paul and Elder.

Injecting huge liquidity and there is no fear of inflation : We have the Fitzpatrick bond which has a convexity of 30, duration of 4, a ytm of 12% and a maturity of 25 years. The central bank is injecting huge liquidity and there is no fear of inflation. If the yields alter by 100 basis points, what would the ..

Social media impact on psychological aspects of relationship : Social media impact on psychological aspects of relationships and marriage

Evaluate the effectiveness of the treatment : The goal of the Research Paper and PowerPoint Presentation is to academically research two special needs topics. Students will start by finding a facility within their county that handles offenders in a manner deemed to be an offender treatment fa..

User Account

All Pages