Consider the following cash flows:YearCash Flow-$28,60015,10013,80010,20012a. What is the profitability index for the cash flows if the relevant discount rate is 11percent? (Do not round intermediate calculations and round your answer to 3decimal places, e.g., 32.161.)b. What is the profitability index if the discount rate is 16 percent? (Do not roundintermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)c. What is the profitability index if the discount rate is 23 percent? (Do not roundintermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)Profitability indexа.b. Profitability indexProfitability indexC.

profitability index is given by present value of cash flow to initial investment. Profitability…

Consider the following cash flows: Year Cash Flow -$28,600 15,100 13,800 10,200 1 2 3 a. What is the profitability index for the cash flows if the relevant d percent? (Do not round intermediate calculations and round yo decimal places, e.g., 32.161.) b. What is the profitability index if the discount rate is 16 percent? (Do no intermediate calculations and round your answer to 3 decimal place c. What is the profitability index if the discount rate is 23 percent? (Do n intermediate calculations and round your answer to 3 decimal place a. Profitability index b. Profitability index c. Profitability index

Consider the following cash flows: Year Cash Flow -$28,600 15,100 13,800 10,200 1 2 3 a. What is the profitability index for the cash flows if the relevant d percent? (Do not round intermediate calculations and round yo decimal places, e.g., 32.161.) b. What is the profitability index if the discount rate is 16 percent? (Do no intermediate calculations and round your answer to 3 decimal place c. What is the profitability index if the discount rate is 23 percent? (Do n intermediate calculations and round your answer to 3 decimal place a. Profitability index b. Profitability index c. Profitability index

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume the appropriate discount rate for the following cash flows is 10.3 percent. Year Cash Flow 1 $2,150 2,050 234 1,750 1,550 What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
Year Cash Flow 0 -$17,400 9,700 8,600 5,100 123 What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 16 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 23 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) Profitability index
What is the NPV of the following cash flows if the required rate of return is 0.13? Year 0 1 2 3 4 CF -3,241 2,952 1,242 3,310 1,616 Enter the answer with 2 decimals (e.g. 1000.23).
Consider the following timeline detailing a stream of cash flows: Date 0 2 3 5 $100 $200 $300 $400 $500 ? Cash flow If the current market rate of interest is 10%, then the future value (FV) of this stream of cash flows is closest to: OA. $1500 OB. $1,887 OC. $3,019 OD. $2,264 D
What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 0 1 2 3 IRR Cash Flow -$ 15,500 6,200 7,500 6,000 %
S Year 0 1 2 3 Cash Flow -$ 9,900 2,300 2,900 5,200 a. What is the profitability index for the cash flows if the relevant discount rate is 6 percent? Profitability index 0.949 0.967 0.875 0.893 0.921 b. What is the profitability index for the cash flows if the relevant discount rate is 16 percent? Profitability index c. What is the profitability index for the cash flows if the relevant discount rate is 23 percent?
For the intrinsic value, why is the cashflow divided by (10%-6%)?
What is the internal rate of return (IRR) of the following set of cash flows? (Enter your answer as a percentage rounding to 2 decimals, e.g., 12.34% as 12.34) Year O cash flow = -146,000 Year 1 cash flow = -32,000 Year 2 cash flow= 60,000 Year 3 cash flow = 70,000 Year 4 cash flow = 53,000 Year 5 cash flow = 65,000
es Consider the following cash flows: Year Cash Flow 0 -$ 29,900 1 13,800 2 3 15,100 11,500 a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. b. What is the profitability index if the discount rate is 13 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 20 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index T
What is the future value in year 5 of the following cash flows given a discount rate of 10%? Year 2 4 5 Cash Flow $844 $653 $987 (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
= 6) Find the internal rates of return on a cash flow with deposit amounts of A = A₁ = 240, B₁ 120, A₂ = 20, B₂ = 290, and withdrawal amounts of Bo at times t = 0, t = 1, t = 2, respectively. = 40, 10,
Consider the cash flows in the table bolow: \table[[ Year, 0, 1, 2, 3, 4, 5], [Cash Flow, - $ 100, $50, $60, $70, $80, $140 11. Consider the cash flows in the table below: Year 0 Cash Flow -$100 1 $50 2 $60 Which one of the following is correct for this cash flow (circle)? A. 100 50+ 10(A/G, 1, 5)+50(P/F, 1,5) B. (50(P/A, i, 5)+10(P/G, i, 5) +50(P/F, i, 5))/ (100)=1 C. 100(P/A, 1, 5)=50+10(A/G, I, 5) D. None of the equations are correct. 3 $70 4 $80 5 $140

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