KYY Inc. has the following data on its 2020 financial statement Total sales 2,000,000 360,000 1,500,000 2,100,000 Profit Beginning total sales Ending total sales A project proposal showed additional investment of 800,000 that would generate 1,000, sales and controllable contribution margin of 120,000. What is the return on investment (ROI) of the project proposal? Should the proposal be ассepted?

KYY Inc. has the following data on its 2020 financial statement Total sales 2,000,000 360,000 1,500,000 2,100,000 Profit Beginning total sales Ending total sales A project proposal showed additional investment of 800,000 that would generate 1,000, sales and controllable contribution margin of 120,000. What is the return on investment (ROI) of the project proposal? Should the proposal be ассepted?

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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Pecos Corporation is considering several investment proposals, as shown below: Investment required Present value of future net Investment Proposal OD, B, C, A O B, D, C, A OB, D, A, C O A, C, B, D A B $ 80,000 $ 100,000 C $ 60,000 D $ 75,000 cash flows $ 96,000 $ 150,000 $ 84,000 $ 120,000 If the project profitability index is used, the ranking of the projects from most to least profitable would be:
Put answer in table format Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $560,000 and has a present value of cash flows of $2,200,000.0. Project 2 requires an initial investment of $5,000,000 and has a present value of cash flows of $7,000,000. 1. Compute the profitability index for each project.2. Based on the profitability index, which project should the company prefer?
Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $400,000 and has a present value of cash flows of $1,100,000. Project 2 requires an initial investment of $4,000,000 and has a present value of cash flows of $6,000,000. 1. Compute the profitability index for each project. 2. Based on the profitability index, which project should the company prefer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Project 1 Project 2 Choose Numerator: Profitability Index T 7 Choose Denominator: 4 of 5 180 # Next > G O
es Lopez Company is considering three alternative investment projects below: Project 1 5.2 years $ 26,700 Project 2 5.7 Years $ 33,700 14.2% 13.1% Payback period Net present value Internal rate of return a. Payback period b. Net present value c. Internal rate of return. Which project is preferred if management makes its decision based on (a) payback period, (b) net present value, and (c) internal rate of return? Preferred Investment Project 3 4.9 Years Reason $19,700 12.5%
Mustafa Inc. has three potential investment projects but can choose only one to invest in. Below is financial information on these projects: Project Investment Net Present Value 1 $300,000 $61,500 2 $325,000 $77,000 3 $215,000 $62,000 Use the profitability index, which project should the company choose?
Connor Corporation is considering two projects (see below) For your analysis assume these projects are mutually exclusive with a required rate of return of 10% project 1 Initial investment =$465,000 cash inflow Year 1= $510,000 project 2 Initial investment=$700,000 cash inflow Year 1= $850,000 Compute the following for each project NPV(net present value) PI(profitability index) IRR(internal rate of return show work
. Suppose that your organization wants to decide which one of the given two projects can be selected for the development, as summarized in the following table. Calculate the Expected Monetary Value (EMV) for each project and suggest which project can be selected? Probability of occurrence of risk/opportunity (Impact) Estimated Profits/Losses Project 1 40% $140000 60% -$60000 Project 2 80% $40000 20% -$8000
The chart below shows the initial investment and expected yearly payback for Project A and Project B Project A Project B Initial Investment $ 300,000 $ 450,000 Expected Yearly PayBack $ 45,000 $ 90,000 What is the Payback Period for Project A and Project B? What is the average ROI for Project A and Project B? Which Project should be chosen?
Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B C D Investment required $ 100,000 $ 125,000 $ 75,000 $ 93,750 Present value of future net cash flows $ 120,000 $ 187,500 $ 105,000 $ 180,000 If the project profitability index is used, the ranking of the projects from most to least profitable would be: Multiple Choice D, B, C, A B, D, C, A B, D, A, C A, C, B, D
company management is considering three competing investment Projects A, B & C Project A 10000 Year Initial Investment Project B 10000 Project C 10000 1100 4160 6225 1 2 3100 5260 8250 3800 7360 9275 4 4600 9460 9300 Assume a discount Rate of 4.05% Use the information above and help the management in choosing the most desirable Project using Payback period, Discounted payback Net Present value and Profitability Index. Out of the four methods which is considered to be the most desirable. Explain
A project with an initial cost of $29,900 is expected to provide cash flows of $9,750, $11,000, $14,100, and $8,600 over the next four years, respectively. If the required return is 8.4 percent, what is the project's profitability index? Multiple Choice .994 839
Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $400,000 and has a present value of cash flows of $1,100,000. Project 2 requires an initial investment of $4 million and has a present value of cash flows of $6 million. Compute the profitability index for each project. Based on the profitability index, which project should the company prefer? Explain.

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