User Account

All Pages

Calculate the profitability index for project x

Assignment Help Finance Basics
Reference no: EM132554935

You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 13 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project X (Videotapes of the Weather Report)

($52,000 Investment) Project Y (Slow-Motion

Replays of Commercials)

($72,000 Investment)YearCash Flow YearCash Flow1$26,000 1$36,000 2 24,000 2 29,000 3 25,000 3 30,000 4 24,600 4 32,000

a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.)

b. Calculate the profitability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.)

c. Which project would you select based on the profitability index?

-Project X

-Project Y

Reference no: EM132554935

Questions Cloud

What is the journal entries required : What is the journal entries required? On November 1, 2016, BIUC issued 2,000 redeemable and retractable preferred shares at a value
Find the present value of minimum lease rental payment : Find the present value of minimum lease rental payment. Prepare the journal entries for FRM Ltd (the Lessee) using the Net Method.
Reflect the strategic goal of bio-world company : Propose four different criteria that you can use in the selection process and that strongly reflect the strategic goal of Bio-World company
Leadership styless-influence personal and behavior patterns : Men and Women are placed in certain sex-role stereotypes, which influence their personal and behavior patterns.
Calculate the profitability index for project x : You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 13 percent.
Compute the proceeds from issuance of the bonds : Compute the proceeds from issuance of the bonds and discount on bonds payable on January 1, 2019. Calculate the amount of interest
Construct the project network diagram using aon method : Construct the project network diagram using AON method and Find one merge activity and two parallel activities - Find all possible paths in the project network
How to determine the incremental cash flows associated : How to Determine the incremental cash flows associated with the proposed washer replacement. Be sure to consider the residual depreciation in year 6
Discuss impact of casinos on lifestyles of customers : Discuss the impact of casinos on the lifestyles of customers. Describe the impact of casinos on the lifestyles of employees.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money 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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd