1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvv77 [185]
1 year ago
6

a project requires an investment of $1,400 and has a net present value of $400. if the internal rate of return is 12%, what is t

he profitability index for the project?
Business
1 answer:
WINSTONCH [101]1 year ago
4 0

The profitability index for the project which requires an investment of $1,400 and has a net present value of $400 with internal rate of return 12% is 1.286 (rounded).

<h3>What is net present value? </h3>

It is a method to calculate the current value of a future stream of payments from a company, project, or investment. To calculate NPV, you need to estimate the timing and amount of future cash flows and pick a discount rate equal to the minimum acceptable rate of return.

How to calculate the profitability index for the project?
First, we will use the net present value formula

NPV = Present value of inflows - present value of outflows

400 = present value of inflows - 1400

present value of inflows = 1400 + 400 = 1800

Next, we want to calculate the profitability index to answer the question
Profitability index = present value of inflows / present value of outflows

= (1800 / 1400)
= 1.286 (rounded)

Learn more about net present value brainly.com/question/17162144

#SPJ4

You might be interested in
On October​ 1, 2019, Fashion Jewelers accepted a​ 5-month, 11% note for​ $7,500 in settlement of an overdue account receivable.
Nataliya [291]

Answer:

The accrued interest on the note at December​ 31, 2019 is $206.25

Explanation:

Fashion Jewelers accepted a​ 5-month, 11% note for​ $7,500.

The amount of interest for 1 year = 11% x $7,500 = $825

The amount of interest for 1 month = $825/12 = $68.75

From October​ 1, 2019 to  December 31, 2019, Fashion Jewelers has accepted the note for 3 months.

The accrued interest on the note at December​ 31, 2019 = $68.75 x 3 = $206.25

7 0
3 years ago
What is a face to face channel
Harrizon [31]
Face to face channel is a concept in sociology, linguistic, media and communication studies describing social interaction carried out without any mediating technology. The is what the word means
4 0
3 years ago
g Marginal revenue product (MRP) of labor refers to the: A. amount by which a firm's total resource cost increases when it emplo
UNO [17]

Answer:

c

Explanation:

Marginal revenue product (MRP) is the change in total revenue when one more unit of a resource is employed.

For example :

Units of labour    Revenue

1                             100

2                             200

The MRP of employing 2 units of labour = (200 - 100) / (2 -1) = 100                          

7 0
3 years ago
Massena Corporation reported the following data for the month of February:
Elodia [21]

Answer:

$186,700

Explanation:

The computation of adjusted cost of goods sold is shown below:-

Before that we need to do the following calculations

Raw material consumed = Beginning raw material + Raw material purchases - Ending raw materials - Raw materials included in  manufacturing overhead costs  as indirect materials

= $40,000 + $63,000 - $24,000 - $5,000

= $74,000

Total manufacturing cost = Beginning work in progress + Raw material consumed + Direct labor cost + Manufacturing overhead cost - Ending work in progress

= $23,000 + $74,000 + $73,700 + $48,000 - $17,000

= $201,700

Unadjusted Cost of goods sold = Raw materials + Total manufacturing cost - Ending finished goods

= $50,000 + $201,700 - $72,000

= $179,700

Adjusted COGS = Unadjusted Cost of goods sold + Underapplied overhead

= $179,700 + ($55,000 - $48,000)

= $179,700 + $7,000

= $186,700

6 0
3 years ago
Bonnie is writing a growth plan for her bicycle repair shop. She wants to pay off the loan for the building she uses for her bus
kati45 [8]

Answer:

Financial goals

Explanation:

3 0
3 years ago
Other questions:
  • If you have a nation that has a production possibilities curve whereas its economy must give up 500 toys to get 1 additional lap
    14·1 answer
  • What is the last step in creating a distribution plan?
    15·1 answer
  • Charles and Dina Bloom live in Swarthmore, PA. Dina's father, Gilberto, lives in Sweden. For each of the following transactions
    12·1 answer
  • Pizza hut has restaurants in India where Joiners make up the majority of the online population. To match their marketing efforts
    13·1 answer
  • which circumstance is most likely to cause a farmer to store soybeans for a future sale instead of selling them right after harv
    12·1 answer
  • Grocery stores frequently put new products in high visibility locations such as the end of an aisle or near the checkout lanes.
    6·1 answer
  • A market researcher wants a large sample size for her survey and decides to stand in the food court of a mall during Christmas s
    15·1 answer
  • What is the correlation coefficient of the relationship between the average weekly hours spent studying and the score on the fin
    6·1 answer
  • H..................................
    14·2 answers
  • Aamir is preparing a research paper. he needs to insert a parenthetical reference that gives credit to the source of a quotation
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!