What is the project net present value-profitability index

Assignment Help Financial Management
Reference no: EM131591350

The Renn project costs $26,000, and its expected net cash inflows are $7,200 per year for 8 years. What is the project's payback period What is the project's net present value (NPV), profitability index (PI), and internal rate of return (IRR) assuming a cost of capital of 12 % Calculate the project's modified internal rate of return (MIRR) assuming a cost of capital of 12 %.

What is the payback period of the Renn project?

The payback period of the Renn project is __years. (Round to two decimal places.)

What is the NPV of the Renn project?

The NPV of the Renn project is $__.(Round to the nearest cent.)

What is the PI of the Renn project?

The PI of the Renn project is__.(Round to two decimal places.)

What is the IRR of the Renn project?

The IRR of the Renn project is__%. (Round to two decimal places.)

What is the MIRR of the Renn project?

The MIRR of the Renn project is __%.(Round to two decimal places.)

Reference no: EM131591350

Questions Cloud

How would you handle a patient : How would you handle a patient who chose not to accept what you thought was the best course of action?
Should parents be given full control over their children : Should parents be given full control over their children?What are the pros and cons of allowing clients to read their own records?
Should national foods produce the new candy : National Foods is considering producing a new candy, Nasty-As-Can-Be. National has spent two years and $450,000 developing this product.
Nursing units in a rehabilitation hospital : Assume that two nursing units are experiencing higher rates of patient falls than the other six nursing units in a rehabilitation hospital.
What is the project net present value-profitability index : What is the project's net present value (NPV), profitability index (PI), and internal rate of return (IRR) assuming a cost of capital of 12 %
Consultants to prepare a report addressing : The CEO of XYZ Health Care has hired your team as consultants to prepare a report addressing the following questions listed below.
Calculate the net present value for the project : Calculate the net present value (NPV) for the following project
How does soil salinization occur : How does soil salinization occur? Should be around 200 word count
What is estimated cost of common equity : What is the estimated cost of common equity, Employing the constant growth dividend discount model,

Reviews

Write a Review

Financial Management Questions & Answers

  Decade of rapid growth-expected to remain at level in future

After a decade of rapid growth, the cash flows in last two years increased only at constant rate of 2%, and it is expected to remain at level in future.

  What amount per year in perpetuity should it? commit

If its cost of equity capital is 9.7%?, to what amount per year in perpetuity should it? commit?

  Equity is expensive and debt is lower cost that equity

Some say debt is expensive is equity is free. Some say equity is expensive and debt is lower cost that equity.

  Computer-based order entry system

Your firm is contemplating the purchase of a new $666,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be worth $54,000 at the end of that time. Suppose your required return o..

  Including the final partial payment

A recent college graduate buys a new car by borrowing $20,000 at 8.4%, compounded monthly, for 5 years. She decides to pay an extra $14 per payment. How many payments (that include the extra $14) will she make, including the final partial payment?

  Yield to maturity of its noncallable bonds remains

General forge and foundry Company has two divisions: one is very risky, and the other has significantly less risk. the company uses its investors' overall required rate of return to evaluate projects. it is most likely that the firm will. A firm's WA..

  What is the value and fcff ratio

What is the Value/FCFF ratio? the Value/EBITDA ratio?

  A trader owns gold as part of long term investment portfolio

For what range of 1-year forward prices of gold does the trader have no arbitrage opportunities? Assume there is no bid-offer spread for forward prices.

  Is allocation of resources in this economy pareto efficient

Consider an economy with two people, Victoria and Albert, and two commodities, tea and 2 crumpets. Currently Victoria and Albert would both be willing to substitute two cups of tea for one crumpet. Further, if the economy were to produce one less cup..

  How large of a mortgage will the bank allow her take out

How much can the woman pay for the home? How large of a mortgage will the bank allow her take out?

  Considering the purchase of an automated molding machine

The management of Erion Corporation is considering the purchase of an automated molding machine that would cost $280,534, would have a useful life of 5 years, and would have no terminal (salvage) value. The automated molding machine would result in c..

  Calculate the irr of the projects

Assume your require a 10 percent return on your investment. calculate the IRR of the projects.

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