An investment project requires a net investment of $100,000 and is expected to generate annual net cash inflows of $25,000 for 6 years. The firm's cost of capital is 12 percent. Determine the profitability index for this project.

Posted Date: 3/28/2013 2:46:46 AM | Location : United States

Ask an Expert

Related Discussions:- Determine the profitability index for this project, Assignment Help, Ask Question on Determine the profitability index for this project, Get Answer, Expert's Help, Determine the profitability index for this project Discussions

Write discussion on Determine the profitability index for this project
Your posts are moderated

Write your message here..

Related Questions

Inventory, HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL

Principles and concepts of financial accountin, explain the types of princi... explain the types of principles and concepts of financial accountin

What is its ending retained earnings balance, Q. The following selected amo... Q. The following selected amounts are available for Vizio Company. Retained earnings (beginning) $1,600 Net loss 300 Cash dividends declared 200 Stock dividends declared 200 What i

Current yields for t-bonds, ACT presently is all-equity financed. This refl... ACT presently is all-equity financed. This reflects the stance of the former CEO, a dominant personality who stated repeatedly: "I don't want us to be in thrall to the demands of t

Financial accounting, The following items are found in the trial balance of... The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. 10 marks Summer 2013 Sundry Debtors Rs.160000 Bad Debts written off Rs 9000 Dis

What do you mean by inflation, Q. What do you mean by Inflation? Predic... Q. What do you mean by Inflation? Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be under

Financial reporting, Describe Following questions:- Q.1 What organizatio... Describe Following questions:- Q.1 What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the

Journalizing, Purchased used truck for 8,000 ,paying 2,000 cash and the bal... Purchased used truck for 8,000 ,paying 2,000 cash and the balance on account

Hw, hw hw

Calculate the cash flow-agency costs, Tom Scott is the owner, president, an... Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40