How would you make your decision

Assignment Help Finance Basics
Reference no: EM13267983

Suppose that you could invest in the following projects but have only $30,400 to invest. How would you make your decision and which projects would you invest in, using Profitability index?

Project Cost NPV

A $ 7,800 $ 3,588

B 10,700 6,634

C 9,400 5,170

D 6,600 3,696

 

Reference no: EM13267983

Questions Cloud

Find complement of a 1s complement sum checksum computation : Incremental Update. Typically, after every hop at least one packet header field (e.g., a packet's time-to-live field) needs to be overwritten. Because the checksum is a simple complement of a 1s complement sum, it turns out that when, for instance..
Calculate the npv of each choice : The opportunity cost of capital is 11.8 percent. Calculate the NPV of each choice and suggest when should Predator sell the company?
How far is the screen from the lens : A plane wave of wavelength 580 nm is incident on a slit with a width of a = 0.50 mm. A thin converging lens of focal length +80 cm is placed between the slit, How far is the screen from the lens
State your understanding of descartes dream argument : State your understanding of Descartes dream argument. Exactly how do you know that you are not dreaming right now? What does this argument suggest about all things we claim to know through the senses?
How would you make your decision : Suppose that you could invest in the following projects but have only $30,400 to invest. How would you make your decision and which projects would you invest in, using Profitability index?
Explain the thermal events-moderate and humid environment : Explain the thermal events that occur during exercise in both a cool/moderate and hot/humid environmentExplain the thermal events that occur during exercise in both a cool/moderate and hot/humid environment
Calculate the angle of the first diffraction minimum : The distance between the first and fifth minima of a single-slit diffraction pattern is 0.40 mm with the screen 50 cm away from the slit, Calculate the angle of the first diffraction minimum
Rate the importance of technology : Rate the importance of technology's role in the process and support your rating.
How much in the april income statement : They received payment for 175 units in April, and payment for 44 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the incremental impact on ebit

Hyperion, Corporation, currently sells its latest high-speed color printer, the Hyper 500, for $350. It plans to lower the price to 300 dollar next year.

  What is its yield to maturity

A bond has a current yield of 8%, a coupon rate of 7%, a face value of $1,000 and matures in 10 years. What is its Yield to Maturity?

  Describe the salary of a fund manager

A mutual fund declares that the salaries of its fund managers will depend on the performance of the fund. If the fund loses money, the salaries will be zero.

  Explain what is the cost of this preferred issue

Explain the flotation costs were $1.50 a share and the issue will be retired in 20 years at its $30 par value. What is the cost of this preferred issue?

  What is the value of an fra that enables the holder to earn

The 12-month, 15-month, 18-month zero rates are 4.5%, 4.6%, 4.7% with continuous compounding. What is the value of an FRA that enables the holder to earn 5.7% (with semiannual compounding) for a 3-month period starting in 1 year on a principal of $1,..

  Compute the value of this stock today which is time 0

A firm does not pay a dividend. It is expected to pay its first dividend of $0.20 per share in three years. This dividend will grow at 11 percent indefinitely. Use a 12 percent discount rate. Compute the value of this stock today which is time 0.

  Computation of bond''s coupon interest rate

Computation of bond's coupon interest rate and What is the bond's annual coupon interest rate

  Calculate the market value of bond

A 10-year bond, with par value equals $1000, pays 10 percent yearly. If similar bonds are currently yielding 6 percent yearly, calculate the market value of the bond.

  Estimate the cost of capital for the project

You found a comparable company in the same line of business, which is also 100% equity financed. Risk free rate = 3%, market risk premium = 5%, and estimated beta of this comparable company is 0.83

  Adopting a qualified retirement plan

The employer wants to adopt a qualified retirement plan that will maximize tax-deferred retirement savings for the accountants, as well as providing adequate benefits for all employees.

  Calculating debt ratio

The Altman Corporation has a debt ratio of 33.33%, and it needs to raise $100,000 to expand. Management feels that optimal debt ratio would be 16.67%.

  Explain what is the net cash flow

Explain what is the net cash flow at time 0 if the old equipment is replaced and what are the NPV and IRR of the replacement project

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