The profitability index helps rank projects because it lets investors quantify the value created per each investment unit. A profitability index of 1.0 is the lowest acceptable measure on the index. Mathematically, a value lower than one means the project's present value (PV) is less than thein...
Answer to: What is the profitability index of the project that has an initial cash outflow of $250 for the next 3 years and a cost of capital of 10...
When the profitability index of an investment is greater than one then the project is worth investing in while when it is less than one then the project should not be undertaken because it won't be profitable. Answer and Explanati...
What is the profitability index for aninvestment with the following cash flows given a 14.5 percent required return? A. 0.94 B. 0.98 C. 1.02 D. 1.06 如何将EXCEL生成题库手机刷题 如何制作自己的在线小题库 > 手机使用 分享 反馈 收藏 举报 参考答案: C 复制 纠错 举一反三 探头的K值是...
The profitability index allows investors to quantify the amount of value created per unit of investment. The Formula The profitability index is calculated by dividing the present value of future cash flows by the initial cost (or initial investment) of the project. The initial costs include ...
The formula for calculating net asset profit is: Net asset interest rate = (net profit, average assets total) * 100% The higher the index, the higher the utilization efficiency of assets. This shows that enterprises have achieved good results in increasing revenue and reducing expenditure and sa...
What is revenue? Explain. What are spillover costs? What is the formula for net income? What is one advantage of a business franchise? What is revenue less cost of sales? What is considered a good price to earnings ratio? What is profitability index?
A profitability index is a method for discerning the relationship between the costs and benefits of investing in a project. If a...
Earnings per share (EPS) is a measure of a company's profitability that indicates how much profit each outstanding share of common stock has earned. It's calculated by dividing the company's net income by the total number of outstanding shares. The higher a company's EPS, the more profi...
To calculate, use the gross profit formula: Revenue – Cost of Goods Sold (COGS) = Gross Profit To find the gross profit, you need to understand what the revenue and cost of goods sold are. Revenue is equal to the total amount you make in sales. The calculation for the cost of goods...