33. (PI) Texas Flooring is interested in purchasing a computer and software that would allow its salespeople
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33. (PI) Texas Flooring is interested in purchasing a computer and software that would allow its salespeople to demonstrate to customers how a finished carpet installation would appear. Managers have estimated the cost of the computer, software, and peripheral equipment to be $30,000. Based on this cost, the managers have determined that the net present value of the investment is $5,000.
Compute the profitability index of the investment (ignore tax).
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Related Book For
Cost Accounting Traditions And Innovations
ISBN: 9780324180909
5th Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney
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