Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a 15- year project has a cost of $1,000,000 and ha

A 15- year project has a cost of $1,000,000 and has annual cash flows of...

70.2K

Verified Solution

Question

Finance

A 15- year project has a cost of $1,000,000 and has annual cash flows of $250,000 in years 1-10, and $100,000 in years 11-15. The company's required rate is 12%. Given this information, calculate the profitability index of the project.

0.48

0.36

0.53

0.75

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

A certain weak acid, HA , has a Ka value of 2.2×10−7. Part A Calculate the percent ionization...

Physics
1.2K views

equal resistances each of resistance R are connected as shown in figure below A battery...

Physics
1.2K views

A solid sphere is in rolling motion In rolling motion a body possesses translational kinetic...

Basic Math
1.2K views

Approximate the following number using a calculator.2)2456.32.46.33() = (Round to three decimal places as needed.)5

Statistics
1.2K views

A factory received a shipment of 47 bolts and the vendor who sold the items...

Algebra
1.2K views

Use a system of linear equations to find the quadratic function f x ax bx...

Accounting
1.2K views

2. Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for...

Accounting
1.2K views

MITCHUP Sc esc s lock in DCO Vidoe ! 1 control F1 F d2l.lonestar.edu/d21/lms/grades/my_grades/main.d21?ou=1380136 bfterranean...

Accounting
1.2K views

Suppose you are developing REA diagrams for a large enterprise / firm. Under what cases...

Accounting
1.2K views

Assume: Purchase price of the land 26531.00 Real estate commission (%) of the purchase price...

Finance
1.2K views

Calculate the nominal and real returns as well as the nominal and real risk premiums...

Finance
1.2K views

what are the examples of linear securities (no exposure to gamma)? and what are the...