Invest in a new capital budgeting project

Assignment Help Operation Management
Reference no: EM1389600

The Sanchez Company has decided to invest in a new capital budgeting project that will require a net investment of $450,000. This project is expected to generate annual operating cash flows of $128,000, for five years. If your required rate of return is 12%, what is the profitability index for this project?

Reference no: EM1389600

Questions Cloud

Material produced on a certain machine : The mean number of flaws per 100 m of material produced on a certain machine at Blanktown Fabrics is 2. If flaws occur randomly, find the probability that in 50 m of material there will be less than 2 flaws.
How did google seizing upon external opportunities : how did Google seizing upon external opportunities, handled outside threats by leveraging its strengths.
Evaluate primary and secondary succession : E valuate  primary and secondary succession. Explain each type of succession thoroughly and give specific examples of everytype.
Disease control plan on cancer : What measures would you suggest in the plan to actually reduce health risks? How would the plan allow the public to recognize pathogens are related to cause of diseases and other health problems?
Invest in a new capital budgeting project : The Sanchez Company has decided to invest in a new capital budgeting project that will require a net investment of $450,000. This project is expected to generate annual operating cash flows
What is the probability that it is defective : Now suppose that a finished product is randomly selected. What is the probability that it is defective?
Disease and condition of body : Need assistance with a paper on any disease or condition of the body. The paper should include thorough description of the disease/condition
You are concerned about the cost of accepting this proposal : You are concerned about the cost of accepting this proposal, especially since it is not clear that LPL will realize any savings or additional revenue from the conversion.
Kirb-bauer disk diffusion technique : The Kirb-Bauer Disk Diffusion Technique was performed on 2 different Mueller-Hinton Agar plates. One plate had Escherichia Coli spread on it and the other plate has Staphylococcus Epidermidis spread on it.

Reviews

Write a Review

Operation Management Questions & Answers

  A marketing manager has three new product offerings

A marketing manager has three new product offerings to the marketplace: organic salad dressing, personal retirement software,

  Explain how has vision specifically taken shape in your work

Explain how has vision specifically taken shape in your workplace experience. Describe whether or not it has been a successful guideline by which decisions also actions are made within that organization.

  Describe how much did pro cube improve snyder systems

describe how much did pro Cube improve Snyder's systems. Which management, organizational also technology issues did it address? Describe how does it give value.

  Illustrate what is the npv of the project

Illustrate what is the NPV of the project. Illustrate what are the other computational analyses that could be used in the decision.

  Explain how could a road map enhance the ability

Explain how could a road map enhance the ability of the organization to achieve its ethical also regulatory compliance goals.

  Explain how would your remarks differ if group reserve

The rooms forecast committee is scheduled to meet later this afternoon. You have been asked to prepare remarks on group no-shows. Explain how would your remarks differ if the group reservation had been made.

  After a number of complaints about its directory assistance

After a number of complaints about its directory assistance, a telephone company examined samples of calls to determine the frequency of wrong numbers given to callers

  Illustrate what does their management style depend on

Think about one of your previous places of employment. Using the contingency approach, explain illustrate what your managers do, "the way they coordinate and integrate work activities." Illustrate what does their management style depend on.

  Should the company outsource design or do it in-house

A company is deciding if it should do design of a product in-house or outsource the design. If outsourced the cost for a low bidder would be $40,000 and the cost for an expensive bidder $100,000.

  New york linen argued in part that general credit

New York Linen argued in part that General Credit was not a holder in due course because of the notation on the second check. In whose favor should the court rule?

  Illustrate what part of emergency operations plan contains

Illustrate what part of Emergency Operations Plan contains detailed supplemental information for responding to a hazard.

  Research methods-root causes and research instruments

Determining potential methods of researching the issues, identifying the root causes of the issues, and determining the appropriate research instruments to collect data are all discussed. Examples are provided with the explanations.

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