Solution-What is the profitability index of the project

What is the profitability index of the project

Assignment Help Finance Basics

Reference no: EM131403280

Finance: Profitability Index

Question

A project has an initial outlay of $1,135. It has a single payoff at the end of year 2 of $7,772. What is the profitability index (PI) of the project, if the company's cost of capital is 7.59 percent?

Reference no: EM131403280

Questions Cloud

Find the change in the force of gravity : Find the change in the force of gravity between two planets when the distance between them is decreased by eight.

Find the modified internal rate of return : Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 13.05 percent.

Coefficient of friction of the surface : At what angle θ should it be banked for maximum control of the racing car? The coefficient of friction of the surface is 0.11 and the acceleration due to gravity is 9.8 m/s2. Answer in units of.

Calculate the mcf of a generated random graph : Run this simulation a number of times, say 100 to 1000 times, to obtain an average value for MCF, and compare the results with that of the realistic social network.

What is the profitability index of the project : A project has an initial outlay of $1,135. It has a single payoff at the end of year 2 of $7,772. What is the profitability index (PI) of the project, if the company's cost of capital is 7.59 percent?

What is the forms cost of preferred stock financing : That preferred stock is currently selling for $55.01. However, the underwriter would charge flotation costs of $3.59 per share. What is the form's cost of preferred stock financing?

Basements or concrete slab foundations : Would you expect radon gas concentration to be higher in houses with basements or concrete slab foundations? Why? How could you test your hypothesis?

Draw a histogram and a relative frequency polygon : Determine the interval width and the class mark for each of the classes in your frequency distribution.- Based on the frequency distribution obtained in part (b), draw a histogram and a relative frequency polygon.

Compute free cash flow based on most recent fiscal year data : Calculate the Free Cash Flow based on most recent fiscal year data: Estimate the free cash flows (FCF) available to the firm. To do this you can use the below formula:

User Account

All Pages

What is the profitability index of the project

Reference no: EM131403280

Reference no: EM131403280

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT