A project has an initial cost of $49,125, expected net cash inflows of $10,000 per year...

A project has an initial cost of $49,125, expected net cash inflows of $10,000 per year for 10 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. Pls show all steps

Expert Solution

Ans 1.10

Year	Project Cash Flows (i)	DF@ 13%	DF@ 13% (ii)	PV of Project ( (i) * (ii) )

1	10000	1/((1+13%)^1)	0.885	8,849.56
2	10000	1/((1+13%)^2)	0.783	7,831.47
3	10000	1/((1+13%)^3)	0.693	6,930.50
4	10000	1/((1+13%)^4)	0.613	6,133.19
5	10000	1/((1+13%)^5)	0.543	5,427.60
6	10000	1/((1+13%)^6)	0.480	4,803.19
7	10000	1/((1+13%)^7)	0.425	4,250.61
8	10000	1/((1+13%)^8)	0.376	3,761.60
9	10000	1/((1+13%)^9)	0.333	3,328.85
10	10000	1/((1+13%)^10)	0.295	2,945.88
		PV		54,262.43


	Total of PV of Cash Inflows			54262.43
	Cash Outflows			49125

	Profitability Index =			1.10
Present value of cash Inflow / Initial Investment (Cash Outflows)				(54262.43 / 49125)

jeff jeffy answered 1 year ago

A project has an initial cost of $64,400, expected net cash inflows of $10,000 per year...

A project has an initial cost of $64,400, expected net cash inflows of $10,000 per year for 11 years, and a cost of capital of 12%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $62,375, expected net cash inflows of $10,000 per year...

A project has an initial cost of $62,375, expected net cash inflows of $10,000 per year for 12 years, and a cost of capital of 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $70,000, expected net cash inflows of $15,000 per year...

A project has an initial cost of $70,000, expected net cash inflows of $15,000 per year for 10 years, and a cost of capital of 12%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $50,000, expected net cash inflows of $8,000 per year...

A project has an initial cost of $50,000, expected net cash inflows of $8,000 per year for 12 years, and a cost of capital of 13%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $48,650, expected net cash inflows of $11,000 per year...

A project has an initial cost of $48,650, expected net cash inflows of $11,000 per year for 7 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

A project has an initial cost of $58,975, expected net cash inflows of $12,000 per year...

A project has an initial cost of $58,975, expected net cash inflows of $12,000 per year for 11 years, and a cost of capital of 10%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.

A project has an initial cost of $42,350, expected net cash inflows of $8,000 per year...

A project has an initial cost of $42,350, expected net cash inflows of $8,000 per year for 8 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $45,450, expected net cash inflows of $8,000 per year...

A project has an initial cost of $45,450, expected net cash inflows of $8,000 per year for 8 years, and a cost of capital of 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $75,000, expected net cash inflows of $13,000 per year...

A project has an initial cost of $75,000, expected net cash inflows of $13,000 per year for 10 years, and a cost of capital of 9%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year...

A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. _ years

Question