User Account

All Pages

Profitability index of the investment

Assignment Help Finance Basics
Reference no: EM131152593

You are offered an investment with returns of $ 2,972 in year 1, $ 3,379 in year 2, and $ 5,232 in year 3. The investment will cost you $ 7,255 today. If the appropriate Cost of Capital (quoted interest rate) is 12.5 %, what is the Profitability Index of the investment?

Reference no: EM131152593

Questions Cloud

Declining demand for ethanol product : Because of the declining demand for your ethanol product and difficulties in purchasing corn from U.S. farmers at a reasonable price you are considering moving your production facility to a foreign location. In the evaluation of this possibility ..
Prepare a partnership tax return : Prepare a partnership tax return.-  Prepare Pages 1-5 of Form 1065 (and any necessary supporting schedules).- Complete a K-1 for Priscilla.
Ethical decision-making processes : Case Study Analysis: Ethical Decision-making Processes In the Module Resources, you were directed to study a movie trailer (Hotel Rwanda) and related articles (Blackwater, Google, Doctors for Haiti) that involve ethical decision making at various lev..
Explain how you see or detect the differences : Identify and research an organization that operates like a 20th century organization but has adopted a structure that manifests 21st century characteristics. Please ensure to use examples from both videos. Explain how you see or detect the differe..
Profitability index of the investment : You are offered an investment with returns of $ 2,972 in year 1, $ 3,379 in year 2, and $ 5,232 in year 3. The investment will cost you $ 7,255 today. If the appropriate Cost of Capital (quoted interest rate) is 12.5 %, what is the Profitability I..
Determine the equations of the elastic curve : Determine the equations of the elastic curve using the coordinates x1 and x2. EI is constant. Use the method of integration.
Sufficient funds to purchase all the desired equipment : Management estimates the issue will cost the firm $320,000 for accounting, legal, and other costs. The underwriting spread is 7.5 percent and the issue price is $22 per share. How many shares of stock must be sold if Quali Tech is to receive suffi..
How is e-business changing the corporate landscape : How is e-business changing the corporate landscape regardless of the industry? How can businesses take advantage of e-business opportunities enhancing their strategic position
Purchasing british pounds forward : Baxter Inc. expects to pay £1,000,000 90 days from now. It decides to hedge its position by purchasing British pounds forward. The current spot rate of the pound is $1.65

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the present values of the given cash flow streams

find the present values of the following cash flow streams. the appropriate interest rate is 11. round your answers to

  Sunset boards is a small company

Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the company'..

  Your response should be at least 200 words in length all

1. in your own words contrast the two behavioral theories of fdi.your response should be at least 200 words in length.

  Recommend two 2 uses of a tax shield that can improve

convertible bonds please respond to the followingfrom the e-activity recommend two actions that the selected company

  Assignment on multinational corporation expansion

Imagine that you are a senior business manager for a U.S.-based multinational company. You have been informed by your supervisor that your Company needs to consider expanding into a new international market to seek new opportunities.To get started..

  Determine a community''s comparative advantage?

Which of the following factors may help determine a community's comparative advantage?

  Will the lower coupon rate

If we compare to coupon rates (say 6% and 12%) as the travel their course to maturity, will the lower coupon rate (6%) have a downward arc, and the higher coupon rate (12%) will have an upward arc?

  The stock price of retro co is 65 investors required a 12

the stock price of retro co. is 65. investors required a 12 percent rate of return on similar stocks. if the company

  What is the incremental cash inflow from the proposed

The monthly interest rate is .2 percent and the variable cost per unit is $168. What is the incremental cash inflow from the proposed credit policy switch?

  Computation of current yield of a bond

Computation of current yield of a bond and They have a 6-year maturity, an annual coupon of $85

  What should strik it rich management do

The course of the future price of gold bullion should become clear within a year. Strik-it-Rich can postpone the expansion for a year by buying a purchase option on the land for $250,000. What should Strik-it-Rich's management do?

  What is the actual rate you are paying on this loan

The interest rate quotation in this example requires the borrower to pay 5 points to the lender up front and repay the loan later with 10 percent interest. What is the actual rate you are paying on this loan?

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