i need help with these 3 questions plese

sswrunav
timer Asked: Jun 21st, 2015

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Consider the following cash flows: Year 0 1 2 3 Cash Flow $-29,300 14,400 14,500 10,900 Requirement 1: What is the profitability index for the above set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Profitability index Requirement 2: What is the profitability index if the discount rate is 14 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Profitability index Requirement 3: What is the profitability index if the discount rate is 21 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Profitability index Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price $1,180 per unit; variable cost = $400 per unit; fixed costs = $4.91 million; quantity = 81,000 units. Suppose the company believes all of its estimates are accurate only to within + 16 percent. Required: What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars. Round your answers to the nearest whole dollar amount (e.g.,1,234,567).) Scenario Base case Best case Unit Sales 81,000 $ Unit Price Unit Variable Cost 1,180 $ 400 $ Fixed Costs 4,910,000 Worst case Chamberlain Corp. is evaluating a project with the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$15,800 6,900 8,100 7,700 6,500 - 3,900 Required: The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) MIRR % Discounting approach Reinvestment approach Combination approach % %
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