What is the profitability index of the project

Assignment Help Finance Basics
Reference no: EM132507151

What is the profitability index of the project when it costs $8.6M to start up and will pay off $2M per year for 6 years, and the discount rate is 14%.

Reference no: EM132507151

Questions Cloud

What are nominal yield to maturity : What are their nominal yield to maturity and their nominal yield to call? What return should investors expect to earn on these bonds?
What types of numbers do need to determine : What types of "numbers" do need to determine, first, if the company can break-even, and then if they can achieve the profit they want?
What is the total impact of changes on nwc : We also see an expected increase of $8000 in accounts payable and a decrease of 2000 in account receivables. What is the total impact of these changes on NWC?
How globalization has changed jobs in organization : Discuss how globalization has changed jobs in an organization where you have worked. What are some HR responses to those changes?
What is the profitability index of the project : What is the profitability index of the project when it costs $8.6M to start up and will pay off $2M per year for 6 years, and the discount rate is 14%.
How to provide a horizontal analysis of estee lauder income : How to provide a horizontal analysis of Estee Lauder's income statement and balance sheet, showing the dollar amount and percent of change
What would jill be prepared to pay for the bond : Her required return on the bonds is 6.2 percent p.a. Assuming annual compounding, what would Jill be prepared to pay for the bond?
Major advantage of using puts as hedge vehicles : Max Houck holds 600 shares of Boulder Gas and light. He bought the stock several years ago at $51.64, and the shares are now trading at $79.00.
Determining the chief investment officer : As the chief investment officer for a money management firm specializing in taxable individual investors, you are trying to establish a strategic

Reviews

Write a Review

Finance Basics Questions & Answers

  How much would the bond be worth

If you purchased a $50 face value bond in early 2015 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2025?

  Calculate monthly discrete returns

Calculate monthly discrete returns (hint: holding period returns) for the NASDAQ index, Intel Corporation (INTC) and Microsoft Corporation (MSFT) stocks prices, respectively.

  Determine the first-year equity after-tax cash flow

Consider the following information for the first year of a proposed property acquisition: effective gross income (EGI) is estimated to be $1.5 million.

  What are the allowable limits of deception

Explain why deception is used in behavioral research, and then express your personal feelings about the use of deception. Should deception ever be used? If not, why not? If so, what are the allowable limits of deception?

  Determining the present value-annual value

The estimated cash flow of Project XP-05/3 is given below:

  Find the dollar value of load commission shopping center

a mutual fund is set up to charge a load. its net asset value is 23.40 and its offer price is 24.70. what is the dollar

  Retirement account on your 66th birthday

1. You believe you will need $150,000 annually to live comfortably while retired. You plan on retiring when you are 65 and will begin withdrawing funds from your retirement account on your 66th birthday. If you expect to need 25 years of retirem..

  Responsibilities to society at large

Do you belive that corporations have any responsibilities to society at large? Is stock price maximization good or bad for society? elaborate on why firms should behave ethically. Define "ethically."

  Present value of growth opportunities

Should the management adopt the payout policy described in c above? Why or why not? Under the 40 percent plowback policy, what is the present value of growth opportunities?

  The annie smith dance center

The Director of Annie Smith Dance Center is asking for assistance with the financial aspects of running a professional group of performers. She wants financial information presented in an easy to read format and a better understand of the profitab..

  Characteristics of a learning organization

What are the characteristics of a learning organization? How can an organization harness intellectual capital to create a learning organization? How can an organization harness human relations to create a learning organization? How can an organizatio..

  What is the value of the company

The company also has a perpetual bond issue outstanding with a market value of $1.93 million.

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