What is the net present value and the profitability index

Reference no: EM132000456

Question: 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: EM132000456

Questions Cloud

Write the workshop clean up procedures : AURTTA022 - Develop and apply mechanical system modifications - What PPE should be worn while Mechanical systems modification of a vehicle

What is the company cost of common equity : What is the company's cost of common equity if all of its equity comes from retained earnings?

How much jose is required to include in his gross income : The fair market value of Jose's services is $10,000. Explain how much Jose is required to include in his gross income and why

Find the effective annual interest rate for each case : Find the effective annual interest rate for each case. What is the effective annual interest rate on the loan, taking account of the impact of initiation fee?

What is the net present value and the profitability index : 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.

What is an appropriate cost of capital for given division : Miller Sisters has an overall beta of 1.27 and a cost of equity of 13.4 percent for the firm overall. The firm is all-equity financed.

The net present value for each investment : Calculate the simple rater of return (SRR) (initial investment only), the payback period, and the net present value (NPV) for each investment.

What are the four main families of probiotics : What foods provide us with these bacteria? Are any of these foods unfamiliar to you? If yes, which ones?What are the four main families of probiotics?

Calculate the market capitalization rate : Miltmar Corporation will pay a year-end dividend of $3, and dividends thereafter are expected to grow at the constant rate of 5% per year.

User Account

All Pages