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What is the profitability index of a project that costs 10000 and provides cash flows of 3000 in Years 1 and 2 and 5000 in Years 3 and 4 with the discount rate of 9 percent?
Wiki User
∙ 18y ago
if this is a homework, or take home test question then please open your textbook and do it yourself. trust me, your only hurting yourself.
Wiki User
∙ 18y ago
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For the NPV criteria a project is acceptable if the NPV is while for the profitability index a project is acceptable if the profitability index is?
less than zero, greater than the requred return
What is the yearly salary of a project manager?
The average yearly salary for a project manager is about 89,000 dollars. The amount varies depending on the complexity of the project and the potential profitability of the enterprise.
When hard capital rationing exist project may be accurately evaluated by use of what?
Profitability Index
If a project with conventional cash flows has a profitability index equal to 1.0 the project you will pay back during the life of the project II will have an internal rate of return that equals the?
required return
What is cost value reconciliation in construction industry?
its a method used in construction of recording the profitability of a project at a regular basis. normally once a month, pending on the size of the project.
What is significance of plant location and layout?
The Location Of The Plant Can Have A Crucial Effect On The Profitability Of A Project, And The Scope For Future Expansion.
Is a document that provides a framework and objective for an improvement project?
Project charter
What does it mean if a project has a Percent Spent of 90 percent Percent Scheduled of 85 percent and a percent Complete of 95 percent?
The project is in good shape and should finish early and within budget
How gestation period of ongoing project affect project financing decision?
The gestation period of an ongoing project is the length of time it takes said project to start showing results or profitability. This affects financing decisions as to whether or not it would be profitable to undertake the project in the first place.
What is the project scope statement?
Confirms what is expected and provides a clear picture of the project.
What is a project accounting?
Project acounting(sometimes referred to as job cost accounting)is the practice of creating financial report specifically designed to track the financial progress of projects,which can then be used by managers to aid project management.
How do you compute the profitability index of a capital-budgeting proposal?
Dividing the present value of the annual after-tax cash flows by the cost of the project
