What is project profitability index

Assignment Help Financial Management
Reference no: EM131923781

Profitability Index

A project has an initial cost of $50,475, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 9%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

Reference no: EM131923781

Questions Cloud

Determining whether to enter the factoring? agreement : What considerations other than cost should MDM Inc. account for in determining whether to enter the factoring? agreement?
Concepts underlying the risk analysis and project evaluation : Explain the concepts underlying the risk analysis and project evaluation.
How much would that investment be worth today : If you invested $1,000 in the stock market in 1903, how much would that investment be worth today?
Annual financing charge associated with agreement : calculate the total annual financing charge associated with this agreement if Hatter borrows enough to support all of its net working capital.
What is project profitability index : A project has an initial cost of $50,475, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 9%. What is the project's PI?
Calculate the present value of the annuity stream : Determine the annuity payment. Calculate the present value of the annuity stream.
How to financial ratio analysis in education sector : How to financial ratio analysis in education sector
Cost of carrying inventory : Which of the following is not a cost of carrying inventory?
Determine the level of operating income : Determine the level of operating income at which Sand Key would be indifferent between debt financing and equity financing.

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the semiannual cash flows from this swap

Determine the notional principals in Euros and pounds for a swap with semiannual payments that will help achieve the objective. Determine the semiannual cash flows from this swap.

  Present capital structure is considered optimal

Mills' present capital structure is considered optimal. The company's marginal tax rate is 40%.

  Investment goal

You would like to have $44,073 for the down payment on a house you plan to buy five years after you graduate. If your investments earn 1.2% APR compounded monthly, how much do you have to invest each month, starting next month, to meet your investmen..

  Find the expected growth rate in the stock price

The common stock for Hunter Corp. currently sells for $78. What dividend would the firm pay next year if the expected stock price will be $82 on the date the dividend is paid and investors require a 11% return? Find the expected growth rate (g) in th..

  What is best estimate of these bonds remaining life

Lourdes Corporation's 11% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 10 years, are callable 3 years from today at $1,050. They sell at a price of $1,159.36, and the yield curve is flat. Assume that interest rates are exp..

  Yield to maturity-coupon bond

7.05 percent coupon bond with 20 years left to maturity is priced to offer a 6.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent.

  How much debt is required to implement new capital structure

Capital structure and dividend policy A large travel company owns a resorts and hotels. The CFO wants to change the company's capital structure. The change will mean that debtratio (debt-to-value-ratio) is increased to 50% by a large issuance of new ..

  Allowing for nonconstant growth

Using the dividend growth model (allowing for nonconstant growth),

  What is the total amount you will receive from the bank

what is the total amount you will receive from the bank including principal and interest?

  Calculate the standard deviation of its return

calculate the standard deviation of its return.

  Record the billing of customers for services performed

The entry to record the billing of customers for services performed includes a. Due to _______, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rates of the two currencies against the U.S..

  Similarities between warrants and convertible bonds

Explain differences and similarities between Warrants and Convertible Bonds. Explain differences and similarities between callable bonds and convertible bonds. Explain differences and similarities between primary, secondary and over-the-counter marke..

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!

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