## Profitability index chegg

The Profitability Index (PI) measures the ratio between the present value of future cash flows to the initial investment. The index is a useful tool for ranking investment projects and showing the value created per unit of investment. The Profitability Index is also known as the Profit Investment Ratio (PIR) or the Value Investment Ratio (VIR).

Answer to The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflow Answer to Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital Answer to me 45. The profitability index (Pl) is calculated by dividing the present value of cash flows by the a. b. c. Future val Calculate the profitability index for A and B assuming a 22% opportunity cost of capital. b. Use the profitability index rule to determine which project(s) you should

## Calculate the profitability index for A and B assuming a 22% opportunity cost of capital. b. Use the profitability index rule to determine which project(s) you should

The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its initial cash outflow. Consider this case: Purple Whale Foodstuffs Inc. is considering investing \$400,000 in a project that is expected to generate Profitability index measure the NPV of project per dollar of investment. Basically it is used to assign grades to the projects as it permits to compute the total of value produced per unit of investment. What Is The Profitability Index,and Why Is It Helpful In The Capital Rationing Process Question: What Is The Profitability Index,and Why Is It Helpful In The Capital Rationing Process This problem has been solved! What is the profitability index for an investment with the following cash flows given a 14.5 percent required return? Year Cash Flow 0 -\$46,500 1 \$12,200 2 \$38,400 3 \$11,300 A. 0.98 B. 1.06 C. 1.02 D. 0.94. 2. What is the net present value of a project that has an initial cash outflow of \$35,000 and the following cash inflows? The profitability index (PI)is a capital budgeting tool that provides another way to compare a project's benefits and costs. It is computed as a ratio of the discounted value of the net cash flows expected to be generated by a project over its life (the project's expected benefits) to its net cost (NINV). Profitability Index = NPV Investment Cost To Illustrate The Use Of This Measure, Let Us Assume Question: Profitability Index = NPV Investment Cost To Illustrate The Use Of This Measure, Let Us Assume That Midwest Region Hospital Is Considering An Investment In Linen Service Shared With Hospitals In The Region.

### Profitability index III. Average accounting return. I and II only. Your firm needs to buy a metal stamping press. The CFO presents you with two analyses: one for a press that is automated, requiring little labour to operate, and another that is manual, requiring a significant amount of labour. This is an example of a decision involving _____.

Answer to Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital Answer to me 45. The profitability index (Pl) is calculated by dividing the present value of cash flows by the a. b. c. Future val Calculate the profitability index for A and B assuming a 22% opportunity cost of capital. b. Use the profitability index rule to determine which project(s) you should

### Profitability Index: Profitability index is a capital budgeting technique that ranks various alternatives on the basis of their profitability. The project with a high PI should be accepted and a

Answer to what is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? What if

## what is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? What if the discount rate is 15 percent? If it is 22 percent? Year 0 -\$12,000. Year 1 \$6200 Year 2 \$5600 Year 3 \$3900

Answer to Question 15 5 pts What is the profitability index for a project with the following expected cash inflows (in millions) a Answer to EXCEL SOLUTION NEEDED PLEASE: EXCEL FORMULA The profitability index is the present value of the future cash flows divide Answer to The profitability index of an investment project is the ratio of the: net present value of every project cash flow to th 17 Oct 2019 Chegg (CHGG) closed at \$32.75 in the latest trading session, Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%. reflect analyst optimism about the company's business and profitability. Answer to Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 8.67

Answer to Problems with Profitability Index. The Matterhorn Corporation is trying to LO 6 choose between the following two. Answer to what is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? What if What is the relationship between NPV and profitability index (PI)?. Step-by-step solution: JavaScript Not Detected. JavaScript is required to view textbook  Answer to Calculating Profitability Index [LO7] What is the profitability index for the ZZ following set of cash flows if the. Answer to Problem 8-13 Calculating Profitability Index [LO 6] Consider the following cash flows: Year Cash Flow 0 \$-29800 1 13,9 Answer to What is the profitability index for this proposed project if the required rate of return is 12%? Year Cash Flows 0 -1,00 Answer to Based on the profitability index (PI) rule, should a project with the following cash flows be accepted if the discount r