POD has a project with the following cash flows: Year Cash Flows 0 −$255,000 1 146,800...

POD has a project with the following cash flows:

Year	Cash Flows
0	−$255,000
1	146,800
2	164,300
3	129,400

The required return is 9.6 percent. What is the profitability index for this project?

Expert Solution

Ans 1.45

Year	Project Cash Flows (i)	DF@ 9.6%	DF@ 9.6% (ii)	PV of Project A ( (i) * (ii) )

1	146800	1/((1+9.6%)^1)	0.912	1,33,941.61
2	164300	1/((1+9.6%)^2)	0.832	1,36,778.06
3	129400	1/((1+9.6%)^3)	0.760	98,288.48
		NPV		3,69,008.15



	Total of PV of Cash Inflows			369008.15
	Cash Outflows			255000

	Profitability Index =			1.45
Present value of cash Inflow / Initial Investment (Cash Outflows)				(369008.15/ 255000)

jeff jeffy answered 1 year ago

POD has a project with the following cash flows: Year Cash Flows 0 −$263,000 1 146,400...

POD has a project with the following cash flows: Year Cash Flows 0 −$263,000 1 146,400 2 163,900 3 129,000 The required return is 9.2 percent. What is the profitability index for this project?

A project has the following cash flows: Year Cash Flow 0 $ 43,500 1 – ...

A project has the following cash flows: Year Cash Flow 0 $ 43,500 1 – 22,500 2 – 33,500 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project, if the required return is 12 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round...

Yellow Day has a project with the following cash flows: Year Cash Flows 0 −$27,000 1...

Yellow Day has a project with the following cash flows: Year Cash Flows 0 −$27,000 1 10,550 2 20,300 3 9,720 4 −3,600 What is the MIRR for this project using the reinvestment approach? The interest rate is 7 percent

A project has the following cash flows : Year Cash Flows 0 −$12,000 1 5,290 2...

A project has the following cash flows : Year Cash Flows 0 −$12,000 1 5,290 2 7,630 3 5,040 4 −1,580 Assuming the appropriate interest rate is 10 percent, what is the MIRR for this project using the discounting approach? 19.21% 15.23% 13.96% 11.63% 17.77%

A project has the following cash flows : Year Cash Flows 0 −$11,700 1 5,110 2...

A project has the following cash flows : Year Cash Flows 0 −$11,700 1 5,110 2 7,360 3 4,800 4 −1,640 Assuming the appropriate interest rate is 7 percent, what is the MIRR for this project using the discounting approach?

A project has the following cash flows: Year Cash Flows 0 −$127,800 1 47,000 2 63,800...

A project has the following cash flows: Year Cash Flows 0 −$127,800 1 47,000 2 63,800 3 51,600 4 28,100 The required return is 8.3 percent. What is the profitability index for this project?

A project has the following cash flows: Year Cash Flow 0 $ 40,000 1 – 19,000...

A project has the following cash flows: Year Cash Flow 0 $ 40,000 1 – 19,000 2 – 30,000 What is the IRR for this project? What is the NPV of this project, if the required return is 11 percent? What is the NPV of the project if the required return is 0 percent? What is the NPV of the project if the required return is 22 percent?

A project has the following cash flows: Year Cash Flow 0 $ 47,000 1 – 26,000...

A project has the following cash flows: Year Cash Flow 0 $ 47,000 1 – 26,000 2 – 37,000 What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2...

A project has the following cash flows: Year Cash Flow 0 $ 42,000 1 – 21,000...

A project has the following cash flows: Year Cash Flow 0 $ 42,000 1 – 21,000 2 – 32,000 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is...

There is a project with the following cash flows : Year Cash Flow 0 −$21,800 1...

There is a project with the following cash flows : Year Cash Flow 0 −$21,800 1 6,300 2 7,350 3 6,750 4 4,400 What is the payback period? Multiple Choice a. 4.00 years b. 3.32 years c. 3.74 years d. 3.56 years e. 2.79 years

Question