ABC Company has two investment options Project A and Project B. Project A requires an initial investment of $500,000 and the expected present value of cash inflow from the project is $608,000. Project B requires an initial investment of $1,000,000 and the present value of cash inflows is $1,180,000. Assume that the company does not have any fund constraint to invest. Based on the given scenario, the profitability index for Project A is _____ and that for Project B is _____.

Q: Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept…

A:

Q: Pound Industries is attempting to select the best of three mutually exclusive projects. The initial…

A: Internal Rate-of-Return or IRR is rate that discounts Net Present Value(NPV) of an investment…

Q: Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept…

A: Answer) Calculation of Discounted Payback period Year  Annual cash flow Present value…

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A: Year  Cash Flows Present Value Factors @13% Present Value of cash flows ($) PVF @12% Present Value…

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A: Profitability index means the division of cash inflow with cash outflow of the project.…

Q: below

A: Calculation of PBP, NPV,IRR of project A Calculation of persent value of project/NPV of project A:…

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A: given, initial cashflow= $49000 pv of cash inflows= $70580

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A: Given:

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A: Net PResent Value = Present Value of future cashflows - Initial Cost

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A: The net present value of the project represents the present worth of the project and NPV helps…

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A: Present value (PV) of cash inflows Divided:-  Initial investment  = Present value of index

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A: The computation as follows: Hence, the MIRR is 16.96%.

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A: Using excel for calculations

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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A:

Q: Consider this case: Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital…

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Q: Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $3,225,000.…

A:

Q: A company is considering a project that has the following cash flows: C0 = -5,000, C1 = +900, C2 =…

A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.