User Account

All Pages

What is the profitability index of a project

Assignment Help Financial Accounting
Reference no: EM132885142

Question 1: Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 12.09 percent. What is the PI of a project if the initial costs are $1,582,037 and the project life is estimated as 8 years? The project will produce the same after-tax cash inflows of $627,518 per year at the end of the year.

Reference no: EM132885142

Questions Cloud

Multilevel systems of organizational learning : Discuss the relationship between the 3 multilevel systems of organizational learning. What should organizations do to facilitate learning at each level?
What is the diluted earnings per share for burke company : What is the diluted earnings per share for 2020? On January 1, 2020, Burke Company issued 15-year, $1,500,000 face value, 5% bonds, at par.
Evaluate level of satisfaction versus engagement : A) What is the difference between job satisfaction and employee engagement? How are motivation and employee engagement related to employee retention?
Lobbying efforts : Students will organize and/or participate in a lobbying effort to promote the enactment and/or implementation of a social policy.
What is the profitability index of a project : What is the PI of a project if the initial costs are $1,582,037 and the project life is estimated as 8 years? The project will produce the same after-tax cash
Create recruitment guidelines and retention strategies : Completing learning activity will help you to create recruitment guidelines and retention strategies and explain why they will appeal to a diverse workforce.
What is the expected current value of this stock : After that, dividends are expected to increase by 2% each year. The discount rate is 14%. What is the expected current value (price) of this stock
What is the forward rate for the one year period beginning : What is the forward rate for the one year period beginning in two years? The 1-year, 2-year. 3-year,and 4-year risk-free zero rates are 4%, 4.5%, 4.75%.
Allocation of essential inventory items : What is the system used to design to address monitiring, acquisiton, allocation of essential inventory items?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain how reported accounting numbers might affect

Explain how reported accounting numbers might affect an individual's perceptions and actions. Cite two examples.

  Formulate klein hedging strategy

Formulate Klein's hedging strategy using only the futures contract shown. Calculate the number of futures contracts to implement the strategy

  Compute the depreciation expense for 2017

Compute the Depreciation Expense for 2017 under both the straight-line and double-declining balance depreciation methods.

  Is consistent the net assets of the acquired subsidiary

However most of the parent's assets and liabilities are measured on a historical cost basis. is this consistent? Explain in detailed ?

  Preparation of two column income statementcampers inc

preparation of two column income statementcampers inc. manufactures camping equipment. shown below for the current year

  How long must you wait until your account has grown

You can earn .45 percent per month at your bank. If you deposit $2,800, how long must you wait until your account has grown to $4,500

  Approach fit that companys mission or strategic plan

Many companies market their products and/or services to children or young teens. Identify one product and/or service that does this. Do you feel it is appropriate to market this product or service to this age group? Explain. Does this approach fit th..

  Determine the acquisition cost of the boat

Determine the acquisition cost of the boat, and record the journal entry needed. Cost to make the boat handicap accessible $9,000

  Which rate would be most informative

Which rate, the APR or the EAR, i.e. APY, would be most informative to them regarding the actual annual interest rate they are being charged

  Prepare the journal entry to record issuance of the stock

Sudoku Company issues 19,000 shares of $10 par value common stock in exchange for land and a building. The land is valued at $231,000 and the building at $368,000. Prepare the journal entry to record issuance of the stock in exchange for the land and..

  Date of the latest balance sheet

In the notes to Brad's financial statements, the aggregate amount of payments for these obligations should be disclosed for each of how many years

  The invoice paid on october 4

The City of Newport orders a new phone system (General Fund) with a quoted price of $101,300 on September 15.-The invoice was paid on October 4.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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