Using the profitability index- after-tax inflows

Assignment Help Financial Management

Reference no: EM13728586

A company is using the Profitability Index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 9.5%. The initial outlay for the project is $379,000. The project will produce the following after-tax inflows of:

Year 1: $179,424

Year 2: $174,170

Year 3: $197,599

Year 4: $187,281

Round the answers to two decimal points

Reference no: EM13728586

Questions Cloud

Using the profitability index when evaluating projects : A company is using the Profitability Index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 9.5%. The initial outlay for the project is $379,000. The project will produce the ..

How the company introduced the new product to customers : How the company introduced the new product to customers. Ways that added value from the new technology was proven

Different types of social media : Think about the different types of social media that are used by organizations (Facebook, LinkedIn). In a 1-2 page paper, use the internet to research and talk about the following:

The downward rigidity of wagesin the modern macro economy : Describe the main explanation for the downward rigidity of wagesin the modern macro economy. Evaluate their probability of being correct and important.

Using the profitability index- after-tax inflows : A company is using the Profitability Index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 9.5%. The initial outlay for the project is $379,000. The project will produce the ..

Philosophy that enables employees : Employee empowerment is a philosophy that enables employees to make decisions about their jobs. It helps employees own their work and take responsibility for their results.

Using the internal rate of return : Tall trees inc is using the Internal Rate of Return The IRR when evaluating projects. You have to find the IRR for the companys project. The initial outlay for the project is $450,000. The project will produce the following after tax cash inflows of

Describe the role of business inventory changes : Describe the role of business inventory changes in determining the equilibrium level of GDP and changes in level of GDP.

Series of training document primers : As a start to this series of training document primers, I'll try to answer the following questions in short:

User Account

All Pages