What is the profitability index of the project

Assignment Help Financial Management

Reference no: EM131538215

A project has an initial outlay of $1,171. It has a single payoff at the end of year 5 of $7,062. What is the profitability index (PI) of the project, if the company’s cost of capital is 13.50 percent? Round the answer to two decimal places.

Reference no: EM131538215

Questions Cloud

What is the extent of the true unfunded? liability : The value of the liabilities exactly matches the value of the assets. What is the extent of the true unfunded? liability?

What is the initial market value of the unlevered equity : How much money can be raised in this way that is, what is the initial market value of the unlevered equity?

Corroborating regarding the insurance restoration contracts : what other management assertion or assertions should ZZZ Best auditors have considered corroborating regarding the insurance restoration contracts?

What is the fair price for one of zero coupon bonds : What is the fair price for one of Cyberdyne's zero coupon bonds?

What is the profitability index of the project : What is the profitability index (PI) of the project, if the company’s cost of capital is 13.50 percent?

Calculate the free cash flow for cellular access : Calculate the free cash flow for Cellular Access for the most recent fiscal year.

Describe the systematic and nonsystematic risk components : Describe the systematic and nonsystematic risk components of the following assets. A risk-free asset, such as a three-month Treasury bill.

Analysis of asset turnover and return on invested capital : Analysis of Asset turnover and Return on invested capital (ROIC) of Tesla company for the last few (or at least couple) years

Interest rate on the loan with compensating balance : How low would the interest rate on the loan with the compensating balance have to be for you to choose it?

User Account

All Pages