Investors and financial analysts often rely on the profitability index (PI) to determine whether the benefits of an investment opportunity outweigh its costs. Essentially, the PI compares projected cash flows to the initial investment required. A PI grea
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...
Answer to: What is the profitability index of a project that has an initial cash outflow of $600, and inflow of for the nears and a cost of capital...
A profitability index is a method for discerning the relationship between the costs and benefits of investing in a project. If a...
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 > 下载刷刷题APP,拍照搜索答疑 > 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 以下不...
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...
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it shouldn’t be relied upon in financial statements. The method provides the ending inventory balance by comparing the total cost of inventory to the price of all the merchandise held in inventory. It can be calculated using the following formula: (beginning inventory + new inventory purchases)...
Project A has the following cash flows: Year CF 0 -$200 1 $80 2 $80 3 $80 4 $80 What is the profitability index if the OCC is 11%? Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? | Year | 0 | 1 | 2 | 3 | ...
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...