A company is considering a new inventory system that will

Assignment Help Finance Basics
Reference no: EM13622768

A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year one, $55,000 in year two, $65,000 in year three, and $40,000 in year four. The firm's required rate of return is 9%. What is the profitability index (PI) of this project?

Reference no: EM13622768

Questions Cloud

A ball has a diameter of 390 cm and average density of : a ball has a diameter of 3.90 cm and average density of 0.0844gcm3. what force is required to hold it completely
If you have 1 share of berkshire hathaway inc brka the : if you have 1 share of berkshire hathaway inc. brka. the stock is traded at 173000. we assume that the firm will
A manufacturer of low-budget television sets has a : a manufacturer of low-budget television sets has a historical defective rate of 10.a. what is the probability that in a
Determine the force p that will produce a 2 in vertical : the 1.25 in diameter steel shaft bc is built into the rigid wall at c and supported by a smooth bearing at b. the lever
A company is considering a new inventory system that will : a company is considering a new inventory system that will cost 120000. the system is expected to generate positive cash
A tour operator believes that the model px 40x - 25x2 can : a tour operator believes that the model px 40x - .25x2 can be used to predict his profit px for selling x tickets.
A 075-kg mass moving with a speed of 50 ms encounters a : a 0.75-kg mass moving with a speed of 5.0 ms encounters a 0.25-kg mass moving in the opposite direction with speed 5.0
A restaurant offers a special pizza with 5 toppings if : a restaurant offers a special pizza with 5 toppings. if there are 12 toppings from which to choose how many different
A company is considering a new inventory system that will : a company is considering a new inventory system that will cost 120000. the system is expected to generate positive cash

Reviews

Write a Review

Finance Basics Questions & Answers

  Find what is the cost of the common stock

If the current stock price is $42, and the flotation cost per share is $4, evaluate what is the cost of the common stock?

  Calculate forecasted eva

Atomic Electronics is planning instituting a plan whereby managers will be evaluated and rewarded based on a measure of economic value added.

  Calculation of payback period, npv and pi of project

Calculation of Payback period, NPV and PI of project and what is the payback period for the proposed investment

  What rate would you obtain if there are no arbitrage

What is the forward rate for year 3 (the forward rate quoted today for an investment that begins in two years and matures in three years)? What can you conclude about forward rates when the yield curve is flat?

  How each statement allows investors to make sound decisions

list the 4 basic financial statements all companies are required to report in the US if they are publicly traded. Describe each statement and explain how each statement allows investors to make sound decisions. Also please discuss the limitations ..

  If japan has low inflation and mexico has high inflation

if japan has low inflation and mexico has high inflation what will happend to the exchange rate between the japanese

  What is def cost of equity capital

DEF Ltd. has a beta of 1.15. If 3-month Treasury bills currently yield 7.9% and the market risk premium is estimated to be 8.3%, what is DEF's cost of equity capital?

  What price should be charged in order to maximize profits

If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in order to maximize profits?

  Both convertibility and warrants attached to debt aim at

both convertibility and warrants attached to debt aim at increasing the attractiveness of debt securities and lowering

  The company uses straight-line method to calculate its

kahn industry inc. decides to add a new machine to its assembly line. the new machine costs 120000 with a useful life

  How much is basic earnings per share amount for 2011

Creekside paid $30 million in dividends on preferred stock, which was convertible into 15 million shares of common stock. How much is basic earnings per share amount for 2011?

  Menninger corps bonds currently sell for 875 and have par

1. menninger corps bonds currently sell for 875 and have a par value of 1000. they pay a 65 annual coupon and have a

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