What is the present value of investment-profitability index

Assignment Help Financial Management
Reference no: EM131569476

For an investment today of 15k you will receive the following cash flows

year 1 2000

year 2 4500

year 3 5500

year 4 7000

Your discount rate is 7%

What is the present value of the investment?

What is the net present value of this investment?

What is the profitability index?

Is the internal rate of return higher or lower than 11% would make this investment?

Reference no: EM131569476

Questions Cloud

What is the expected return of wendy portfolio : Wendy invests $25 in Stock A and $75 in stock B. What is the expected return of Wendy's portfolio?
Observe when taking risk with other people money : What do you think are the ethical limits that managers should observe when taking risk with other people's money?
What is the current market value of assets owned by the fund : What is the NAV? If there are 25.2 million shares outstanding, what is the current market value of assets owned by the fund?
Use the afn equation to forecast broussard additional funds : Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
What is the present value of investment-profitability index : What is the present value of the investment? What is the net present value of this investment? What is the profitability index?
Consider the case when the volatility approaches zero : Consider the case when the volatility approaches zero.
Find the put-call parity relationship for these options : find the put-call parity relationship for these options.
What is the meaning of the ex-coupon price : What is the meaning of the ex-dividend price? What is the meaning of the ex-coupon price?
What is fran basis in the stock of the corporation : What is the amount of Fran’s recognized gain or loss on the transaction? What is Fran’s basis in the stock of the corporation?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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