Net present value and profitability index
Not what you're looking for?
Calculate the net present value and profitability index of a project with a net investment of $20,000 and expected net cash flows of $3,000 a year for 10 years if the project's required return is 12 percent. Is this project acceptable?
Purchase this Solution
Solution Summary
The solution explains how to calculate the net present value and profitability index and determine if the project should be accepted
Solution Preview
The NPV is calculated as
PV of cash inflows - initial investment
Since the cash inflows are an annuity, we use ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Introduction to Finance
This quiz test introductory finance topics.