Illustrate what is the profitability index for project a

Assignment Help Business Management

Reference no: EM13112885

Q. Zellar's, Inc. Is considering two mutually exclusive projects, A and B. Project A costs $ 75,000 and is expected to generate $48,000 in year one and $45,000 in year two. Project B costs $80,000 and is expected to generate $34,000 on year one, $37,000 in year two, $26,000 in year three and $25,000 in year four. Zellar, Inc.'s required rate of return for these projects is 10%. Illustrate what is the profitability index for Project A?

Reference no: EM13112885

Questions Cloud

Compute the return on investment-residual income : Compute the return on investment, residual income and economic value added for the current situation.

Explain how do you compute the minimum volume of h2o : Explain how do you compute the minimum volume of H2O(water) required to dissolve NaCl( sodium chloride) of 500 grams in H2O( water) at the temperature of 100 degree celsisu?

Find negative numbers correspond to students who lost weight : Positive values correspond to students who gained weight and negative numbers correspond to students who lost weight. Is a weight fain of 15 pounds of (6.8) kilograms unusual?

Describe how the mitochondrial acetyl coa is transported : Following a meal rich in carbohydrates and proteins, the liver converts the excess glucose and amino acids to acetyl CoA within the matrix of the mitochondria. Describe how the mitochondrial acetyl CoA is transported out of the matrix and how the ..

Illustrate what is the profitability index for project a : Project B costs $80,000 and is expected to generate $34,000 on year one, $37,000 in year two, $26,000 in year three and $25,000 in year four. Zellar, Inc.'s required rate of return for these projects is 10%. Illustrate what is the profitability in..

Determine how many grams of oxygen would be used : Determine how many grams of Oxygen(O2) would be used when 10.82 Litres Nitric oxide (NO(g) is formed at the temperature of 19.82 degree Celsius and pressure of 1.092 atm?

Why would the second test of broths be used : when conducting this test some microbiologists inoculate two sets of broth, one with carbohydrate and one without (PR Base Broth). Given that an uninoculated control is used to increase the reliability of the test, why would the second test of bro..

Determine the velocity of the conveyor belt : A rolled oat's piece has a thickness =1.2 mm. The density= 600 kg/m3, specific heat capacity=2200 J/kgK and thermal conductivity= 0.4 W/mK,The product is to be baked from twenty degree celsius.

Illustrate what are the industry values and norms : Illustrate what are the industry's values and norms? Where do these values and norms come from? Explain how would you characterize the industry's culture? In illustrate what way does its culture fit with its business structure or model?

User Account

All Pages