1. What is the profitability index of a project that has an initial cash outflow...
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Finance
1. What is the profitability index of a project that has an initial cash outflow of $550, an inflow of $230 for the next 3 years and a cost of capital of 8 percent?
A.
0.667
B.
1.765
C.
1.078
D.
2.739
2.
What is the NPV for a project whose cost of capital is 12 percent and initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash inflows of $1,600,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,500,000 in year 4?
A.
$106,543
B.
-$196,615
C.
-$137,053
D.
$4,862,947
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