Part A: A project has an initial cost of $60,025, expected net cash inflows of $11,000...

80.2K

Verified Solution

Question

Finance

Part A: A project has an initial cost of $60,025, expected netcash inflows of $11,000 per year for 11 years, and a cost ofcapital of 14%. What is the project's PI? Do not round yourintermediate calculations. Round your answer to two decimalplaces.
Part B: A project has an initial cost of $35,000, expected netcash inflows of $14,000 per year for 10 years, and a cost ofcapital of 11%. What is the project's MIRR? Do not roundintermediate calculations. Round your answer to two decimalplaces.

Answer & Explanation Solved by verified expert

4.5 Ratings (619 Votes)

Solution Part A The projects PI is 100 Working Notes Profitability Index PV of Inflows PV of outflows Year Cash inflows PVF 14 Present value 1 11000 0877192982 9649122807 2 11000 0769467528 8464142813 3 11000 0674971516 7424686678 4 11000 0592080277 6512883051 5 11000 0519368664 5713055308 6 11000 0455586548 5011452025 7 11000 0399637323 See Answer

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