The profitability index is computed by dividing the quizlet
The profitability index is a technique used to measure a proposed project's costs and benefits by dividing the projected capital inflow by the investment. Divide that final number by the original investment $10,000 and the PI has been determined: .9704. As one can see, the Profitability Index is less than 1 so the project should be scrapped. The NPV can also be determined by subtracting the initial investment ($10,000) from the total PV of the project ($9,704) the project profitability index is computed by dividing the present value of cash inflows of the project by present value of the cash outflows of the project? True or false. Best Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Get 1:1 help now from expert Accounting tutors The profitability index is computed by dividing the. A. total cash flows by the initial investment. B. present value of cash flows by the initial investment. C. initial investment by the total cash flows. D. initial investment by the present value of cash flows. 7. (TCO 6) The profitability index is computed by dividing the (Points: 5) total cash flows by the initial investment. present value of cash inflows by the present value of each outflow. initial investment by the total cash flows. initial investment by the present value of cash flows. 54. The profitability index is computed by dividing the a. total cash flows by the initial investment. b. present value of cash flows by the initial investment. c. initial investment by the total cash flows. 1)The profitability index is calculated by dividing the project's net present value by the present value of the projected cash outflows. True or False 2)It is the difference in the reinvestment assumptions that can be significant in determining when to use the net present value or internal rate of return methods.
Profitability Index Profitability index is an investment appraisal technique calculated by dividing the present value of future cash flows of a project by the initial investment required for the project.
the project profitability index is computed by dividing the present value of cash inflows of the project by present value of the cash outflows of the project? True or false. Best Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Get 1:1 help now from expert Accounting tutors The profitability index is computed by dividing the. A. total cash flows by the initial investment. B. present value of cash flows by the initial investment. C. initial investment by the total cash flows. D. initial investment by the present value of cash flows. 7. (TCO 6) The profitability index is computed by dividing the (Points: 5) total cash flows by the initial investment. present value of cash inflows by the present value of each outflow. initial investment by the total cash flows. initial investment by the present value of cash flows. 54. The profitability index is computed by dividing the a. total cash flows by the initial investment. b. present value of cash flows by the initial investment. c. initial investment by the total cash flows. 1)The profitability index is calculated by dividing the project's net present value by the present value of the projected cash outflows. True or False 2)It is the difference in the reinvestment assumptions that can be significant in determining when to use the net present value or internal rate of return methods.
24 Jul 2011 The budgeted income statement indicates the expected profitability of operations for the The profitability index is computed by dividing the.
When invited to assess a system to determine its “people blockages,” a practitioner Profitability must also be good to maintain organizational health. in ratings of climate or some index of performance than does the variable of Most traditional organizations have a structure in which the division of operations or. at http://www.usa.att.com/traveler/index.jsp or by contacting your To determine whether or not information is every colleague because it directly impacts our profitability and our Allocating or dividing markets or customers;. - Boycotting or Account · Billing · Studying · Teaching · Troubleshooting · Community and Safety · Verified Creators. Popular Articles. Resending a confirmation message Race against the clock to match terms and definitions, and compete against others to get the top score! To play Match Log in to your
What is the profitability index for a project with an initial cash outflow of #30 and subsequent cash inflows of $80 in year one and $20 in year two of the discount rate is 12%? 2.91 The PI rule for an independent project is to _____ the project if the PI is greater than 1.
1 - All cash flows occur at the end of a period. 2 - All cash flows are immediately reinvested at a rate of return equal to the discount rate. If a company has to pay interest of 14% on long-term debt, then its cost of capital is 14% . The project profitability index is computed by dividing the present value of the cash inflows of the project by present value of the cash outflows of the project. True False False What is the profitability index for a project with an initial cash outflow of #30 and subsequent cash inflows of $80 in year one and $20 in year two of the discount rate is 12%? 2.91 The PI rule for an independent project is to _____ the project if the PI is greater than 1. The profitability index is calculated by dividing the present value of future cash flows that will be generated by the project by the initial cost of the project. A profitability index of 1 The profitability index is a technique used to measure a proposed project's costs and benefits by dividing the projected capital inflow by the investment. Divide that final number by the original investment $10,000 and the PI has been determined: .9704. As one can see, the Profitability Index is less than 1 so the project should be scrapped. The NPV can also be determined by subtracting the initial investment ($10,000) from the total PV of the project ($9,704) the project profitability index is computed by dividing the present value of cash inflows of the project by present value of the cash outflows of the project? True or false. Best Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Get 1:1 help now from expert Accounting tutors
the project profitability index is computed by dividing the present value of cash inflows of the project by present value of the cash outflows of the project? True or false. Best Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Get 1:1 help now from expert Accounting tutors
Race against the clock to match terms and definitions, and compete against others to get the top score! To play Match Log in to your The profitability index is computed by dividing the present value of cash flows by the initial investment. If the internal rate of return is used as the discount rate in the net present value calcula-tion, the net present value will be The profitability index is computed by dividing the Entry field with correct answer initial investment by the total cash flows. total cash flows by the initial investment. initial investment by the present value of cash flows. present value of cash flows by the initial investment. The Future value of an annuity is computed by multiplying the annual cash flow by the FV of annuity factor that reflects the interest rate (i) and number of periods (n) The future value of a single payment is computer by Profitability Index An index that computes the number of dollars returned for every dollar invested, with all calculations performed in present value dollars. Computed as present value of net cash inflows divided by investment; also called present value index.
Adjusted RevPAR is a performance metric used in the hospitality industry. It is calculated by dividing the variable net revenues of a property by the total available