The present value of the cash inflows

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A project has an initial investment of $204,400 and will generate 5 annual cash flows of $62,700. Assume a cost of capital of 14.8%.Calculate the profitability index? (PI).

The present value of the cash inflows is? $_____?(Round to the nearest? cent.)

The profitability index is?_____?(Round to two decimal? places.)

Pan American? Airlines' shares are currently trading at $68.69 each. The yield on Pan? Am's debt is 6?% and the? firm's beta is 0.6.The? T-Bill rate is 2?% and the expected return on the market is 5.5?%. The? company's target capital structure is 45% debt and 55?% equity. Pan American Airlines pays a combined federal and state tax rate of 40?%. What is the estimated cost of common? equity, employing the Capital Asset Pricing Model? (CAPM)?

The estimated cost of common equity for Pan American Airlines is?____%?(Round to two decimal? places.)

Reference no: EM131580673

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