Still overwhelmed by exam stress? You've come to the right place!

We know exam season has you totally swamped. To support your studies, access Gold Membership for FREE until December 31, 2025! Normally £29.99/month. Just Log In to activate – no strings attached.

Let us help you ace your exams efficiently!

Questions
Questions

FA25-BL-BUS-F307-1134 Final Exam- Requires Respondus LockDown Browser

Single choice

A project has a profitability index of 2.2, and the present value of cash outflows is $25 million. Find the net present value of this project, which is _____ million.

Options
A.$80
B.$22
C.$30
D.None of these
E.$55
View Explanation

View Explanation

Standard Answer
Please login to view
Approach Analysis
We start by identifying what the profitability index (PI) means and what information we have. - The PI is defined as PI = PV of inflows / PV of outflows. Here, PI = 2.2 and PV of outflows = 25 million. - From this, we can calculate the PV of inflows: PV_......Login to view full explanation

Log in for full answers

We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!

Similar Questions

As an employee at a software company, you devise a plan for a novel AI model that will collect large data and predict the outcome of World Cup matches in real time. You propose an expensive service for gamblers. It will cost $2 million for your firm to develop and you’re confident you can launch before the June 2026 start. Which is the most persuasive argument you can present to management?

Question at position 1 (3 marks, difficulty level: Easy) What is the NPV of this project? Assume the cost of capital is 9%. [table] Year | Project A 0 | -300,000 1 | 250,000 2 | 90,000 3 | 90,000 4 | 100,000 5 | 110,000 [/table]$205,873.92$216,940.48$234,156.78$228,454.01

Question at position 1 (3 marks, difficulty level: Easy) What is the NPV of this project? Assume the cost of capital is 9%. [table] Year | Project A 0 | -300,000 1 | 250,000 2 | 90,000 3 | 90,000 4 | 100,000 5 | 110,000 [/table]$228,454.01$216,940.48$205,873.92$234,156.78

Question at position 1 (3 marks, difficulty level: Easy) What is the NPV of this project? Assume the cost of capital is 9%. [table] Year | Project A 0 | -300,000 1 | 250,000 2 | 90,000 3 | 90,000 4 | 100,000 5 | 110,000 [/table]$216,940.48$234,156.78$205,873.92$228,454.01

More Practical Tools for International Students

To make preparation and study season easier for more international students, we've decided to open up Gold Membership for a limited-time free trial until December 31, 2025!