The following information is available for a potential capital investment. The potential investments profitability index (rounded to
Question:
The following information is available for a potential capital investment.
The potential investment’s profitability index (rounded to two decimals) is:
(a) 5.40.
(b) 1.19.
(c) 1.23.
(d) 1.40.
Transcribed Image Text:
Initial investment Salvage value Net annual cash flow Net present value Useful life $80,000 10,000 14,820 18,112 10 years
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9781119191674
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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