Calculate profitability index of project, Basic Statistics

Assignment Help:

Your division has been allocated $15M for capital projects for the coming year. You've been able to identify five potential projects, as outlined in the table below, each of which will last 10 years.

Project Name

Initial Cost

Annual Cash Flows

Discount Rate

Alpha

8M

2M

6%

Bravo

7.5M

2.25M

9%

Charlie

4M

0.75M

3%

Delta

5M

0.6M

4%

Echo

2M

0.5M

10%

a. Show the profitability index of each project.

b. Which project(s) should the firm undertake?

c. Which project(s) would the firm undertake if capital is not rationed? 

 

 

 


Related Discussions:- Calculate profitability index of project

Historigrams and histogram, what is the difference between histotigrams and...

what is the difference between histotigrams and histograms?

Statement, prof. ya-lu-chan definitions statistices

prof. ya-lu-chan definitions statistices

Current Liabilities and Payroll , Prior to the last payroll period of the c...

Prior to the last payroll period of the calendar year, the cumulative earnings of Employer A were $105000. The earnings for the last payroll period of the year which will be paid o

Confidence interval, 1. Provide an overview of the scenario and the variabl...

1. Provide an overview of the scenario and the variable involved. Include an explanation of why and how constructing the confidence interval adds value. I.e., why might this inform

Business law, LAW 2003 Assignment 1 (Winter 2012) 1. Brief the following c...

LAW 2003 Assignment 1 (Winter 2012) 1. Brief the following case: Ragoonanan v. Imperial Tobacco (from pages 587 to 595 of the Ontario Reports) on the document attached online. It’

Econometrics , Use the data in the BWGHT.txt for this question. The variabl...

Use the data in the BWGHT.txt for this question. The variable descriptions are given in the file BWGHT_variables.txt. There are 1388 observations in this dataset. (a) Run the regre

Histogram , The following figure shows a histogram of the annual maxima of ...

The following figure shows a histogram of the annual maxima of daily rainfall levels (in millimetres) recorded at Maiquetia international airport, Venezuela, for the years 1952 to

Time series, what is meant by time series?

what is meant by time series?

Degree of tastiness, A researcher is interested in comparing tastiness of d...

A researcher is interested in comparing tastiness of different parts of cheese in grilled cheese sandwiches.  The researcher expects that Cheddar cheese grilled sandwiches are rate

Write Your Message!

Captcha
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