Dax Systems is considering a project that has the following cash
flows for Project X and...
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Dax Systems is considering a project that has the following cashflows for Project X and Y. What is the PI of X, using the newmethod? Cost of Capital = 10% Year Project X Project Y 0 -$1,000-$2,000 1 $500 $1,400 2 $500 $800 3 $500 $400 0.243 0.201 0.5450.920 0.117
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3.8 Ratings (493 Votes)
Statement showing Cash flows
Particulars
Time
PVf 10%
Amount
PV
Cash Outflows
-
1.00
(1,000.00)
(1,000.00)
PV of Cash outflows = PVCO
(1,000.00)
Cash inflows
1.00
0.9091
500.00
454.55
Cash inflows
2.00
0.8264
500.00
413.22
Cash inflows
3.00
0.7513
500.00
375.66
PV of Cash Inflows =PVCI
1,243.43
PI = PVCI/PVCO
1.24
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