Calculate profitability index of project, Basic Statistics

Assignment Help:

Your division has been allocated $15M for capital projects for the coming year. You've been able to identify five potential projects, as outlined in the table below, each of which will last 10 years.

Project Name

Initial Cost

Annual Cash Flows

Discount Rate

Alpha

8M

2M

6%

Bravo

7.5M

2.25M

9%

Charlie

4M

0.75M

3%

Delta

5M

0.6M

4%

Echo

2M

0.5M

10%

a. Show the profitability index of each project.

b. Which project(s) should the firm undertake?

c. Which project(s) would the firm undertake if capital is not rationed? 

 

 

 


Related Discussions:- Calculate profitability index of project

Accrue definition in accounts, To history income and expenditures/expenses ...

To history income and expenditures/expenses when they connect with the identification requirements of the finance form engaged regardless of when the money action happens.

Determine the coefficient of determination, 1. A researcher was interested ...

1. A researcher was interested lowering the high school dropout level in his county. He measured the reading level of students entering middle school (based on a standard test) and

Probability distribution, In a mathematics examination the average grade wa...

In a mathematics examination the average grade was 82 and the standard deviation was 5. all students with grade from 88 to 94 received grade of B. if the grade are approximately no

Statistics for management, characteristics of statistics and any two applic...

characteristics of statistics and any two application of statistics

Determine the coefficient of determination, A researcher is interested in t...

A researcher is interested in the relationship between fathers' performance in high school and their children's social skills.  She obtains the high school transcripts of fathers a

Vectors, What do u mean by Vectors? Explain its types.

What do u mean by Vectors? Explain its types.

Histogram and historigram, show the differences between histogram and histo...

show the differences between histogram and historigram

Explain hypothesis test, Oprah Winfrey endorsed Barack Obama in the Democra...

Oprah Winfrey endorsed Barack Obama in the Democratic presidential primary. Does Oprah's endorsement make a difference? If so, we would expect support for Obama to be higher among

Write Your Message!

Captcha
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