What is the profitability index for project

Assignment Help Finance Basics
Reference no: EM132953772

The following are the cash flows of two projects:

Year Project A Project B0 $(230) $(230)

1 110 130

2 110 130

3 110 130

4 110

If the opportunity cost of capital is 11%, what is the profitability index for each project?

Reference no: EM132953772

Questions Cloud

Determine great west should purchase or lease : Based on this information, determine whether Great West should purchase or lease the new float plane.
Will the project be accepted : A project that costs $2,000 to install will provide annual cash flows of $530 for the next 5 years. The firm accepts projects with payback periods of less than
How the items should be treated in the financial statement : Your manager has contacted, How the items should be treated in the financial statements of your client companies for the year ended 31 March 2021?
Calculate the equivalent annual cost of the new machine : Calculate the equivalent annual cost of the new machine if the discount rate is 14%
What is the profitability index for project : If the opportunity cost of capital is 11%, what is the profitability index for each project?
Calculate firm a free cash flow : In 2012, Firm A had sales of $500 million, COGS of $210 million, SGAE of $70 million, depreciation (not included in COGS or SGAE) of $60 million, and a decrease
What is the value of firm b interest tax shield : Assume that capital markets are perfect except for the presence of taxes. Firm B has a market value of equity of $150 million and a market value of debt of $30
How a ltd could use the financial statements of b ltd : Discuss the limitations that should be considered in making that economic decision stating your conclusion on the reliability of that decision.
Why goods are sent to consignee at invoice price : Why goods are sent to consignee at invoice price? What adjustment entries are recorded in the books of the consignor to find profit on consignment when goods

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!

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