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

Sta, explain two charateristics.and two aapplication ofics statist

explain two charateristics.and two aapplication ofics statist

Cost accounting, To bring Mr. Kid to justie, the company must reconstruct i...

To bring Mr. Kid to justie, the company must reconstruct its activities for June. You have been assigned to perform the task of reconstruc*ion. After interviewing selected employee

Cumulative frequency, how would we find cumulative frequency for the median...

how would we find cumulative frequency for the median of discrete series

Define Annuity , Annuity A sequence of equivalent money payments made or o...

Annuity A sequence of equivalent money payments made or obtained at equivalent durations over a specific time period.

Measure of dispersion, What are the applications of measure of dispersion i...

What are the applications of measure of dispersion in civil engineering?

Permutation and combination, How many different starting lineups of 5 baske...

How many different starting lineups of 5 basketball players can be chosen from a squad of 13 players?

Homework, The probability a computer will boot is .08. What is the least nu...

The probability a computer will boot is .08. What is the least number needed so that the probability at least two will boot is greater than .99?

Ascertainment bias, Ascertainment Bias A possible form of the bias, ma...

Ascertainment Bias A possible form of the bias, mainly in retrospective studies, which arises from a relationship amongst the exposure to the risk factor and the probability o

Short-term credit decision, Short-Term Credit Decision In no more than...

Short-Term Credit Decision In no more than one typed page, provide a statement of your decision to lend or not lend to this company based on your interpretation of the company

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