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A company is planning to expand its business is costing OMR 21756. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

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.

Question

A company is planning to expand its
business is costing OMR 21756. The
following cash inflows are expected.
Calculate Profitability index given the
rate of discounting to be 3.008%
Machine A
Years
12960
1
13300
2
12500
14500
4
اخترأحد الخيارات
a. 27675.7870
b. 0.440
c. none of the options O
d. 2.289 O
e. 2.272 O
3.

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A company is planning to expand its business is costing OMR 18656. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 1 11766 13300 3 12500 4 14500 Select one: O a. 2.588 O b. 29616.654 O c. 0.386 O d. 2.606 O e. none of the options
A company is planning to expand its business is costing OMR 21761. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 1 14498 13300 3 12500 4 14500 Select one: O a. 2.360 O b. 29163.875 O c. none of the options O d. 0.427 O e. 2.340
A company is planning to expand its business is costing OMR 24509. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 10107 13300 12500 14500 Select one: Oa a. none of the options Ob. 22153.099 Oc. 1.904 Od. 1.916 Oe. 0.525 Previous page Next page
A company is planning to expand its business is costing OMR 24271. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 1 11055 2 13300 3 12500 4 14500 Select one: a. none of the options b. 0.510 c. 23311.416 d. 1.960 e. 1.974
A company is planning to expand its business is costing OMR 23355. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 1 10548 2 13300 3 12500 4 14500 a. none of the options b. 23735.221 c. 0.496 d. 2.016 e. 2.029
A company is planning to expand its business is costing OMR 21601. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 1 14564 2 13300 3 12500 4 14500 Select one: a. none of the options b. 0.424 c. 2.380 d. 29387.948 e. 2.360 Clear my choice
A company is planning to expand its business which is costing OMR 80000. The following cash inflows are expected to come. Calculate Profitability index for the machine given the rate of discounting to be 5.005% 1 Machine A Years Lia 15000 1 23000 42500 3 52300 4 اختراحد الخيارات a. 1.50 b. 0.23 C. None of the options d. 1.34 e. 254 اجل اختماري
Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: O a. 1.48 O b. None of the options O c. 1.69 O d. 1.83 Oe. 1.26
Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: a. 1.69 b. 1.48 c. 1.26 d. 1.83 e. None of the options Find the Net Present Value (NPV) for Oman Computer company if the initial investment is 5000 OMR and the cash Inflows are as follows: Year 1 =1250 OMR; Year 2 =1500 OMR; Year 3=1750 OMR and Year 4=2000 OMR. Use discount rate as 3%. Select one: a. 1005.94 OMR b. 1574.27 OMR c. 2344.92 OMR d. None of the options e. 2070.76 OMR
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A company is planning to expand its business is costing OMR 19252. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 12396 13300 12500 4 14500 2. 3.

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