The profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent is: 15%.
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Profitability index</h3>
First step is to find the Net present value (NPV) of the given cash flow using discount rate PVF 16% and PV of cash flow which in turn will give us net present value of 49.7.
Second step is to calculate the profitability index
Profitability index = 49.7/340
Profitability index = .15×100
Profitability index=15%
Therefore the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent is: 15%.
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Answer:
-1.362637
or if you round your answer -1.36
Step-by-step explanation:
solve for k by simplifying both sides of the equation and isolating the variable.
First, let's establish a ratio between these two values. We'll use that as a starting point. I personally find it easiest to work with ratios as fractions, so we'll set that up:

To find the distance <em>per year</em>, we'll need to find the <em>unit rate</em> of this ratio in terms of years. The word <em>unit</em> refers to the number 1 (coming from the Latin root <em>uni-</em> ); a <em>unit rate</em> involves bringing the number we're interested in down to 1 while preserving the ratio. Since we're looking for the distance the fault line moves every one year, we'll have to bring that 175 down to one, which we can do by dividing it by 175. To preserve our ratio, we also have to divide the top by 175:

We have our answer: approximately
0.14 cm or
1.4 mm per year