What is the profitability index for the project

Assignment Help Financial Accounting
Reference no: EM13509995

Kuntz Company has a project that requires an initial investment of $32,800 and has the following expected stream of cash flows:

Year 1-25,000
Year 2-20,000
Year 3-10,000

Required

Assuming the company's cost of capital is 12 percent, what is the profitability index for the project? (Round to one decimal place.)

 

Reference no: EM13509995

Questions Cloud

Define how negative and positive charges compare : Write an explanation of how you can predict the motion of a charged hockey puck that is moved by other charged pucks. How negative and positive charges compare and contrast
Build a basic cipher base class : Build a randomly generated simple substitution cipher and use it to encode messages. Again the encoded messages will be in all upper case letters only.
Why are standards important for nics connectors and media : Why are standards so important for NICs, connectors, and media
Design a lr test to choose between the hypotheses : Design a LR test to choose between the hypotheses
What is the profitability index for the project : Assuming the company's cost of capital is 12 percent, what is the profitability index for the project? (Round to one decimal place.)
Design a dc motor control system to run : Design a DC motor control system to run the 48V DC motor at 40rpm up to max load of the motor
The effectiveness of the enzyme catalase : What is the effect of the enzyme bromelain (meat tenderizer) on the effectiveness of the enzyme catalase?
Two characteristics intelligence and athletic prowess : The phrase reflects two characteristics intelligence and athletic prowess
Knowledge of managerial finance : What industry is your company part of? Who are some of the company's primary competitors? What doe the future look like for this industry - The current ratio indicates the extent to which current liabilities are covered by those assets that are exp..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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