Uses profitability index when evaluating projects

Assignment Help Financial Management
Reference no: EM131352676

Gold mining, inc uses the profitability index when evaluating projects. gold mining's cost of capital is 11.77 percent. what is the PI of a project if the initial costs are $2320888 and the project life is estimated as 10 years? the project will produce the same after-tax cash inflows of $383311 per year at the end of the year

Reference no: EM131352676

Questions Cloud

What is the company average accounts receivable figure : Two Doors Down, Inc., has weekly credit sales of $40,400, and the average collection period is 25 days. What is the company's average accounts receivable figure?
Non-business bad debt and how much is the deduction : Several years ago, R’s son, S, got into the restaurant business. R loaned S $10,000 to help him get the business going. No note was signed nor was any interest charged. The business was initially a huge success but as time passed, it began having fin..
Explain why you would not expect it to be ferromagnetic : Are the electronic configurations of gadolinium and dysprosium consistent with the fact that they are ferromagnetic elements? Explain.
Niche highlighting the similarities and differences : A description of your personal niche and of your assigned niche highlighting the similarities and differences. A description of your personal habitat and your assigned habitat highlighting the similarities and differences.
Uses profitability index when evaluating projects : Gold mining, inc uses the profitability index when evaluating projects. gold mining's cost of capital is 11.77 percent. what is the PI of a project if the initial costs are $2320888 and the project life is estimated as 10 years? the project will prod..
Explain the securities and exchange commissions rationale : ACC 562:Explain the Securities and Exchange Commission's rationale to charge Cardillo executives with each of the following violations:making false representations to outside auditors,failing to maintain accurate financial records,c. failing to file ..
What is electronic shell structure : The paramagnetic susceptibility of the rare earth elements is generally greater than that of the transition elements. Take into account the electronic shell structure and explain why.
Compare the performance of the two quantizers : Using either the mean squared error or the SNR as a measure of performance, compare the performance of the two quantizers.
Preparation of liver homogenate : Why is a sucrose-phosphate buffer used in preparation of liver homogenate?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Businesses to initially be formed as sole proprietorships

If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?

  Futures using the parity relationship

It is now January. The current interest rate is 5.0%. The June futures price for gold is $1493.00, while the December futures price is $1,503. Assume the June contract expires in exactly 6 months and the December contract expires in exactly 12 months..

  Bank required by law to report to potential borrowers

Tai Credit Corp. wants to earn an effective annual return on its consumer loans of 14.6 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers?

  Considering insurance settlement offers

You are considering two insurance settlement offers. The first offer includes annual payments of $36,000, $42,000, and $50,000 over the next three years, respectively, with the first payment being made one year from today. The other offer is the paym..

  Write browns memo to home office to report on her purchase

Write Brown's memo to the home office to report on her purchases.- Include the store's balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.

  Income from the additional preferred stock

The treasurer of Kelly Bottling Company (a corporation) currently has $220,000 invested in preferred stock yielding 12 percent. He appreciates the tax advantages of preferred stock and is considering buying $220,000 more with borrowed funds. Compute ..

  Manufacturing stock has an annual return mean

Tyler Trucks stock has an annual return mean and standard deviation of 11.5 percent and 45 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 11.8 percent and 45 percent, respectively. What is..

  Amortization schedule set up

Amortization Schedule Set up an amortization schedule for a $35,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10%. Round your answers to the nearest cent. Enter "0" if required

  What is the growth rate implied in this forecast

Company XYZ is preparing a business plan. They expect to make a profit of $12,563 in year 1, $190,713 in year 2, and continue growing at the same rate until year 5. What is the growth rate implied in this forecast?

  Accountant made adjusting entries at the end of the period

X Company's accountant made adjusting entries at the end of the period for the following reasons: As a result of these entries, total equities decreased by_____

  The expected return on the investors portfolio

An investor plans to invest 75 percent of her funds in the common stock of Gamma Industries and 25 percent in Epsilon Company. The expected return on Gamma is 12 percent and the expected return on Epsilon is 16 percent. The standard deviation of retu..

  Dividend for foreseeable future

In the last three years, Merry Theaters paid annual dividends of $0.32, $0.42, and $0.50 a share respectively. The company now predicts that it will keep the same dividend for the foreseeable future given that business has leveled off. Given the lack..

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