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weqwewe [10]
2 years ago
12

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return o

n projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively. Time 0 1 2 3 4 5 Cash Flow −100,000 30,000 45,000 55,000 30,000 10,000 Use the PI decision rule to evaluate this project; should it be accepted or rejected?
Business
1 answer:
alekssr [168]2 years ago
4 0

The profitability index decision rule of the project equals 2.45 year and thus, the project should be accept to be embarked on.

<h3>What is a profitability index?</h3>

The rule refers to a decision-making exercise that helps to evaluate whether to proceed with a project based on its profitability.

Hence, because the profitability index decision rule of the project equals 2.45 year and thus, the project should be accept to be embarked on.

Read more about profitability index

<em>brainly.com/question/18089407</em>

#SPJ1

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What is the npv assuming cash flows all come at the end of each period wall street prep?
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The npv assuming cash flows all come at the quit of each length of wall road prep is the net gift value (NPV) component. the existing value (PV) of a move of cash flows represents how a great deal the future coins flows are well worth as of the cutting-edge date.

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5 0
1 year ago
If your poll is to accurately reflect public views, your survey respondents must reflect the
kow [346]
<span>If your poll is to accurately reflect public views, your survey respondents must reflect the </span>population.

Hope this helps !

Photon
6 0
3 years ago
uan Pablo and Zak are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or n
Colt1911 [192]

Answer: Advertise on radio and earn $14,000

Explanation: Dominant strategy may be explained as the tactics or option which works best for a particular firm and seems to give the firm an edge abive other competitors.

Since both are following their dominant strategy, even though advertising on TV seems more lucrative if only one of the advertise, by the time both of them place TV advert, profit falls to $8000. therefore the strategy who gives the highest return when both thread the same advertising path is the radio advert, which gives a return profit of $14,000. Therfore, Uan Pablo should advertise on radio and earn a profit of $14000

6 0
4 years ago
Would it be more profitable to own 200 shares of Penny's pickles or 1 share of Exxon ?
ZanzabumX [31]

1 share of exxon, pennys pickles isnt exactly the most booming market right now

7 0
3 years ago
Read 2 more answers
Which of the following statements is(are) false regarding the direct method of allocating service department costs?
QveST [7]

Correct Question:  Which of the following statements is (are) false regarding the direct method of allocating service department costs?

(A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method.

(B) Once an allocation is made from a service department using the direct method, no further allocations are made back to that department.

A. Only A is false.

B. Only B is false.

C. Neither A nor B is false.

D. Both A and B are false.

Answer:

A, Only A is false

Explanation:

The selection of an allocation base in the direct method is easier than the selection of an allocation base is false in that allocation base in step method allocates support costs to the support departments and the operating departments that recognise the services provided betwenn thos suport departments.

Cheers.

8 0
3 years ago
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