What is the net present value and the profitability index

Assignment Help Financial Management

Reference no: EM131510832

Millenium Genetics Corporation has a proposal for a project that will have the following cash flows in the next four years. What is the net present value and the profitability index for this project? The discount rate is 6%. Using each method, is it a “Go” or a “No Go?”

Investment Beginning of Year 1 500,000

Income End of Year 1 265,000

Income End of Year 2 215,000

Additional Investment in Year 3 105,000

Income End of Year 4 320,000

Reference no: EM131510832

Questions Cloud

What proportion of textbook receives favorable reviews : The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. What proportion of textbook receives

What is the probability that the portfolios value moves : What is the probability that the portfolio's value moves in the same direction in both of the next two years?

What is the projects npv : A project has an initial requirement of $185,162 for new equipment and $11,148 for net working capital. What is the project's NPV if the tax rate is 39%?

What will be the utilization of each workstation : how many kanbans will be necessary to authorize a production run? What will be the utilization of each workstation?

What is the net present value and the profitability index : What is the net present value and the profitability index for this project?

Challenges associated with pursuing transnational strategy : What are the challenges associated with pursuing the transnational strategy?

How expensive a car can she afford on the dealer terms : A student has a job that leaves her with $500 per month in disposable income. How expensive a car can she afford on the dealer's terms?

Consider the three stocks : Consider the following three stocks: Stock A is expected to provide a dividend of $10 a share forever starting at the end of the first year (time t = 1)

Adjusted gross income is determined by? calculating : Adjusted gross income is determined by? calculating:

User Account

All Pages