8. A project has an initial cost of $45,375, expected net cash inflows of $15,000 per...

8. A project has an initial cost of $45,375, expected net cash inflows of $15,000 per year for 11 years, and a cost of capital of 10%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

Solutions

Expert Solution

Solution :

The Project's Profitability Index = 2.15 ( when rounded off to two decimal places )

Please find the attached screenshot of the excel sheet containing the detailed calculation fro the above solution.

jeff jeffy answered 5 months ago

Next > < Previous

Related Solutions

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 $41,400, expected net cash inflows of $15,000 per year...

A project has an initial cost of $41,400, expected net cash inflows of $15,000 per year for 10 years, and a cost of capital of 13%. 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 $52,425, expected net cash inflows of $15,000 per year...

A project has an initial cost of $52,425, expected net cash inflows of $15,000 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) A project has an initial cost of $51,125, expected net cash inflows of $14,000 per...

A) A project has an initial cost of $51,125, expected net cash inflows of $14,000 per year for 11 years, and a cost of capital of 14%. 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. B)A project has an initial cost of $70,350, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 11%. What is the...

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.

Subjects