Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 13 Mar 2018 My Price 5.00

NPV index

21.        NPV and the Profitability Index [LO1, 7] If we define the NPV index as the ratio of NPV to cost, what is the relationship between this index and the profitability index?

22.        Cash Flow Intuition [LO1, 2] A project has an initial cost of I, has a required return of R, and pays C annually for N years.

a.   Find C in terms of I and N such that the project has a payback period just equal to its life.

b.   Find C in terms of I, N, and R such that this is a profitable project according to the NPV decision rule.

c.    Find C in terms of I, N, and R such that the project has a benefit–cost ratio of 2.

 

Answers

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Status NEW Posted 13 Mar 2018 08:03 AM My Price 5.00

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