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A: The answer and the explanation is provided below:
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A:
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Q: 1) Pay back period 2) Net present value 3) Profitability Index 4) Internal Rate of Return
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Q: Which of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc.…
A: Profitability is that position of the company were the revenue earned is over the expenses incurred…
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A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: Explain profitability index
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Q: i) Profitability index
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Q: net present value and profitability index
A: Net present value = Present value of net annual cash inflows - Present value of initial cash outflow
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A: Particulars Amount in $ Beginning Direct Materials 13500 Add Direct Material purchases 36000…
Q: a. What is debt management ratio? b. What is profitability ratio?
A: Since, you have asked multiple question, we will solve one question for you. if you want any…
Q: Which of the following statements is true? OA. Profit margin is calculated by dividing total assets…
A: The accounting is a process to classify the financial transactions, record in journal and prepare…
Q: g. operating profit margin h. long -term debt ratio i. total debt ratio
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Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables…
A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total…
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A: The financial ratios are used as a measure of the financial health of the company.
Q: Find the below following: Gross Profit Ratio Operating Ratio Net Profit Ratio Operating (Net) Profit…
A: as per Bartleby guidelines when multiple subparts asked for one single question we can answer 1st 3…
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Don't Answer the Payback Period since its already been answered
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- Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, . use the Pl to determine which projects the company should accept. What is the Pl of project A? i Data Table (Round to two decimal places.) (Click on the following icon o in order to copy its contents into a spreadsheet.) Cash Flow Project A -%241,900,000 $150,000 $350,000 Project B Year 0 $2,300,000 $1,150,000 $950 000 $750,000 $550,000 Year 1 Year 2 Year 3 $550,000 Year 4 $750,000 $950,000 4% Year 5 $350.000 Discount rate 18% Print DoneBlue Spruce Inc. is comparing several alternative capital budgeting projects as shown below: Initial investment Present value of net cash flows O C.B.A OA.C.B. OC.A.B. OAB.C. A Save for Later $102000 112000 Using the profitability index, the projects rank as Projects B $142000 $182000 222000 132000 C & Attempts: 0 of 1 used Submit Answer PriScProfitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept. What is the PI of project B?(Round to two decimal places.) Cash Flow Project A Project B Year 0 −$1,800,000 −$2,400,000 Year 1 $500,000 $1,200,000 Year 2 $600,000 $1,100,000 Year 3 $700,000 $1,000,000 Year 4 $800,000 $900,000 Year 5 $900,000 $800,000 Discount rate 5% 17%
- You are considering a project that has the following cash flow data. What is the project's payback? (Ch. 11) Year 0 1 2 3 Cash Flow -900 350 450 600 Group of answer choices 1.95 1.52 2.60 2.17 2.38From the problem below :1. For capital budgeting purposes, what is the net investment in the new, high-performing machine?A. P186,400B. P185,000C. P169,600D. P148,000 2. What is the payback period?A. 4.49 yearsB. 5.24 yearsC. 5.76 yearsD. None from the choices 3. Compute the new, high-performing machine's net present value.A. P1,200B. P15,892C. P28,025D. P6,729In proper capital budgeting analysis we evaluate incremental __________ cash flows. Select one: a. accounting b. operating c. before-tax d. financing
- Question: Which of the following methods of capital budgeting accounts for the time value of money? Options: A) Net Present Value (NPV) B) Payback Period C) Accounting Rate of Return (ARR) D) Profitability Index (PI)1. Set capital spending 2. Determine potential projects 3. Forecast cash flows 4. Identify cost of capital ang risk 5. Select and implement project. Discuss which the capital budgeting process listed above you think would be the most challenging. Give reasons for yout answers.The net present value of a capital budgeting project is ________. The difference between the present value of the expected future cash flows and the initial cash outflow The present value of the expected future cash flows divided by the initial cash outflow The initial cash outflow divided by the present value of the expected future cash flows
- Consider the following project cash flow. YEAR CASH FLOW 0 -1000 1 500 2 500 3 500 4 500 5 500 Use this information to calculate the Internal Rate of Return by linear interpolation(the trial and error method). WITH WORKING PLEASERequired: A number of terms and concepts from this chapter and a list of descriptions, definitions, and explanations appear below. For each term listed below (1 to 9), choose at least one corresponding item (a to k). Note that's single term may have more than one description, and a single description may be used more than once or not at all. A. Discounted cash flow method of capital budgeting. B. Estimate of the average annual return on investment that a project will generate. C. Capital budgeting method that identifies the discount rate that generates a zero net present value. D. Decision that requires managers to evaluate potential capital investments to determine whether they meet a minimum criterion, E, Only capital budgeting method based on net income instead of cash flow. F. Ratio of the present value of future cash flows to the initial investment. G. Value that a cash flow that happens today will be worth at some point in the future. H. Concept recognizing that cash received…Calculate/estimate the IRR(s) for a 6-year project with the following cash flows: CF0 = -50, CF1 =28 = CF2 = CF3 = CF4 = CF5, and CF6 = -93. In Excel, plot the NPV (= Y axis) against r (= discountrate), using r = 0%, 2%, and so on until you find all IRRs in the chart. Identify/estimate all IRRs.