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
Answer: Melinda has helped to create an integrative Culture.
Explanation: An integrative Culture is a Culture that believes in exchange of practices, beliefs, ideas by integrating two or more cultures. Cultures, Practices, beliefs are unique and do not have to be sacrificed at the expense of another. An Integrative culture system positively impacts an individual's experience especially in a new culture. An opposite type of Culture is the Control culture which is manipulative and governing is accomplished through authoritarian style, no additional input can be encouraged by individuals except from authority.
Answer:
The money supply will increase by 12,500 dollars
Explanation:
when the money is deposited the loan will make the required reveneus and start loans for the remained over and over
The multiplier effect will be 1/required reserve ratio: 1/0.2 = 5
we multiply 2,500 dollars times the money multiplier of 5
total icnrease inthe money supply: 2,500 x 5 = 12,500
Answer:
A. If the loan is not reclassified as equity, Swan can deduct interest expense annually of $18,000, and Tonya includes in gross income annually interest income of $18,000.
Explanation:
Loans received under $385 should not be reclassified as equity.
Interest expense is determined by multiplication of the money Tonya loans Swan multiplied by the interest rate.
Therefore,
Interest expenses = 600000 x 3%
= $18000
Answer:
I think that a small business introducing a new line of clothing and accessories should use the penetration pricing policy. The penetration pricing policy prices their products very low to start out with to try and distract competitors from there competition and towards them.
Explanation:
Hope that helps!
