Solution-Net present value and profitability index

Net present value and profitability index

Reference no: EM13523917

Two investment projects which are mutually exclusive both require a $10,000,0000 investment. Projected cash flows are:
Year Project A Project B
1 $3,500,000 $6,500,000
2 $3,500,000 3,000,000
3 $3,500,000 3,000,000
4 $3,500,000 1,000,000

If your discount rate is 12 percent, calculate payback, net present value and profitability index for each project.

Reference no: EM13523917

Questions Cloud

Design and implement an snmp agent - generate skeleton code : Product the key elements to manage are the doors and the power switches. The doors have 2 states: open/closed and the switches have also 2 states ON/OFF

Find a multinational corporation : Find a multinational corporation that operates in more than three countries. Discuss which countries they operate in and what types of forward contracts are used to hedge risk

What are the waves natural frequencies : The sound a string guitar can be varied by changing the tension in each string. what are the wave's natural frequencies

Explain the result of the formation of co2 : A mixture of CO(g) and O2(g) in a 1.1 L container at 1100K has a total pressure of 2.2 atm. After some time the total pressure falls to 1.9 atm as the result of the formation of CO2. Find the amount of CO2 that form.

Net present value and profitability index : Net present value and profitability index

Explain how many kilograms of ice quantity of heat melt : Given that there are 1.8 x 10^20 moles of diatomic molecules present, how many kilograms of ice (at the North and South Poles) will this quantity of heat melt at 0°C. (The molar heat of fusion of ice is 6.01 kJ/mol.) find in Kg

One of the ratios in the long-term debt paying analysis : 1. One of the ratios in the long-term debt paying analysis category is comparing total liabilities to total assets. What is the intention of this ratio?

What is the total charge of the plutonium nucleus : What is the total charge of the plutonium nucleus? (The neutral plutonium atom has 94 electrons.), What is the magnitude of the force on an electron at a distance of 9.75 Angstrom from the plutonium nucleus

Evaluate the total heat intake if the atmosphere warms : The molar heat capacity of a diatomic molecule is 29.1 J/K·mol. Assuming the atmosphere contains only nitrogen gas and there is no heat loss, calculate the total heat intake if the atmosphere warms up by 5°C during the next 50 years in J/mol

User Account

All Pages

Net present value and profitability index

Reference no: EM13523917

Reference no: EM13523917

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

If the firm has 100 shares of common stock outstanding a

Explain what is meant by a limit order how does a stop

Can she sue her start-up company for age discrimination

Illustrate the impact on the monetary policy reaction

What rate should the shop report

Why has international banking grown so rapidly

Find probability that none is related to a kidney problem

How much will you have accumulated at the end of 18 years

What is the value of the straight-debt portion of the bonds

Create an equally weighted portfolio of five computer

Question on ethical challenges

Strasburg company paid a dividend of 135 per new share

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT