Profitability Index basis and a Payback Period basis

 

Calculate the NPV, Profitability Index, and Payback Period for the following mutually exclusive projects.
5-year project; a cost of $15,000; returns of $4,000 at the end of the first year; returns then increase by $1,000 annually.
5-year project; a cost of $15,000; returns of $13,000 at the end of the first year; returns of $2000 per year for each year after the first year.
The firm uses a 10% discount rate.

Which project would you choose on an NPV basis, a Profitability Index basis, and a Payback Period basis?

Sample Solution

The profitability index rule is a decision-making tool that aids in determining whether or not to pursue a project. The index is a calculation of the proposed project’s potential earnings. A profitability index or ratio greater than one implies that the project should move forward, according to the guideline. If the profitability index or ratio falls below one, the project should be scrapped. The profitability index is determined by dividing the current value of future cash flows generated by the project by the project’s starting cost. The project will break even if the profitability index is 1. If it’s less than one, the disadvantages outweigh the advantages. If it is greater than one, the business should be lucrative.

The character characteristics radiated by Creon, as I would like to think, are packed with glitches. Creon portrays a progression of glitches through his character combined with tremendous pride that drives him to the various experiences that he experienced. He settles on unreasonable choices without speculation wisely and in prudence. He doesn’t counsel others to use their astute exhortation and rather settles on his own choices that land him in various difficulties. Creon shows his pride by being simply the lord unrivaled and furthermore pounding as a better being than the town women. For example, Sophocles et. Al (18) gives the proof that the judgment of Antigone to pass on was made a huge deal about for the sole explanation that Antigone was undermining a man as opposed to the real explanation that she ignored him. Additionally, Sophocles et.

Al (20) approves the male prevalence that Creon utilizes unjustifiably over abuse ladies when he marks his child Haemon of being a “lady’s slave” since Thebes’ kin were identifying with Antigone for experiencing the various trials. In any case, what causes me to feel for him is the way that he regards counsel from Chorus, which is clearly some valuable data. He fears for his life on the grounds that the Theban ruler could rebuff him, which shows that he gulped his tremendous pride and tuned in to someone else (Sophocles and Carson 8). Be that as it may, a definitive issue that curbs his pride is the end of his child and dear spouse, where his pride totally vanishes. Johnson (25) demonstrates that in the long run, he concedes that he wasn’t right that he didn’t notice any individual’s recommendation, which caused him to repeat a large portion of the grave slip-ups that he did. These occasions are obviously heart-dissolving, and they caused me to feel for him not at all like toward the start of the whole story when he was executing different outrages cruelly.

In any case, Creon’s last experience doesn’t persuade me to feel for him similarly that I identify with Antigone. I feel for Antigone more than Creon due to her stinging trials and her character attributes that delineate him as basically an ideal guiltless woman experiencing encounters that are awful. Antigone is an extreme lady that oozes courage who figures out how to curb the powers of the oppressive men like Creon, who abuse ladies in the Theban culture. The occasions that she lived in were troublesome for ladies since men were domineering. She experiences numerous difficulties since her sibling perishes and she attempts her best to give an aware internment to his sibling, Polynieces. In the midst of the anger from individuals, for example, Creon and other men, Antigone figures out how to move and offers the respectable entombment to her dear sibling. Then again, Antigone gives her boldness when she excuses her fainthearted sister, Ismene, who pushes her to quit taking part in the unremitting battles with men for her sole right as a lady. As Waller (9) shows Ismene delineates her weakness by accepting that ladies are intrinsic supporters of any man since nature directs along these lines, which is a conviction that Antigone won’t hold. I feel for her more in light of the fact that in the midst of the anger and obvious inflexibility that the men in her whole society delineate, she figures out how to discover solidarity to battle for the ladies’ government assistance, which is a tough undertaking. She figures out how to withstand the exceptional weight from the merciless men and guarantee that her family isn’t capitulating to the cultural weight that expects ladies to remain moronically accommodating to each subjective guideline that the men bring.

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.