What is the pi for mulligan current project

Reference no: EM13281915

Mulligan, Inc. is currently considering an eight-year project that has an initial outlay or cost of $140,000. The cash inflows from its project for years 1 through 8 are the same at $35,000. Mulligan has a discount rate of 12%. Because there is a shortage of funds to finance all good projects, Mulligan wants to compute the profitability index (PI) for each project. That way Mulligan can get an idea as to which project might be a better choice. What is the PI for Mulligan's current project?

Reference no: EM13281915

Questions Cloud

A constant-pressure calorimeter of negligible heat capacity : If 200. mL of aqueous 0.862 M HCl is mixed with 200. mL of aqueous 0.431 M Ba(OH)2 in a constant-pressure calorimeter of negligible heat capacity.

Find the smallest difference between two numbers : Assume a 16-bit fixed point, two's complement representationwith 8-bits of integer and 8-bits of fraction. What is therepresentation of the following values in hexidecimal.

Which asset have a greater annual straight-line depreciation : Asset B will have a useful life of 8 years and cost $3.5 million; it will have installation costs of $200,000 and a salvage or residual value of $800,000. Which asset will have a greater annual straight-line depreciation?

Explain the gas is heated at a constant external pressure : The gas is heated to 675. K at a constant external pressure of 1.00 bar. b. The gas is heated to 675. K at a constant volume corresponding to the initial volume. c. The gas undergoes a reversible isothermal expansion at 310. K until the pressure i..

What is the pi for mulligan current project : That way Mulligan can get an idea as to which project might be a better choice. What is the PI for Mulligan's current project?

Will geronimo accept the project : Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?

What is the torque on the lever : Torque can be calculated by multiplying the force (N) applied at 90 degrees to the lever arm at a distance (m) from the pivot point (point of rotation), what is the torque on the lever

What is the definition of multicultural education : What is the definition of multicultural education and what are some of its benefits and challenges in an early childhood setting?

How far does earth move toward her as she falls : A 2.4kg object is moving along the x-axis at 1.55m/s. As it passes the origin, two forces F1 and F2 are applied, both in the y direction (plus or minus).

User Account

All Pages