What is the profitable index of project

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1. What is the profitable index (PI) of a project that costs $250,000 and will earn $100,000 the first year, $90,000 the second year, $80,000 the third year, and $70,000 the fourth year, assuming a discount rate of 10%? Show your work.

2. An investor has a three-stock portafolio with 25,000 invested in Apple, $50,000 invested in Ford, and $25,000 invested in Waalmart. Apple's beta is estimated to be 1.20, Ford's beta is estimated to be 0.80, and Walmart's beta is estimated to be 1.0. What is the estimated beta of the investor's portafolio?

Reference no: EM132070191

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