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1. What monthly rate of interest will yield an annual effective rate of interest of 14%?

1.17%

1.10%

1.08%

1.14%

2. The Fitness Center is considering including a treadmill in this? year's capital budget. The cash outlay for the treadmill is $ 1 comma 590$1,590. The? firm's cost of capital is 7.4 %7.4%. ?After-tax cash? flows, including? depreciation, are as shown in the table below. Calculate the profitability index? (PI) for this project.

End of Year Cash Flow

1 $ 520

2 $520

3 $520

4 $520

5 $520

The present value of the cash inflows is ______.

?(Round to the nearest? cent.)

The profitability index is _______.

?(Round to two decimal? places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92741049

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