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23. Write On! has a proposed project with an initial cost of $101,000 and cash flows of $74,000 per for Years 1 to 5.
23. Write On! has a proposed project with an initial cost of $101,000 and cash flows of $74,000 per for Years 1 to 5. At the end of the Year 5 there will be an additional net cash inflow of $68,000. Based on the profitability index rule, should the project be accepted if the discount rate is 12.5 percent? Why or why not? A) Yes; because the PI is 2.2 B) Yes; because the PI is 3.0 C) Yes; because the PI is 2.6 D) No; because the PI is 0.8 E) No; because the PI is 3.3
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th Global Edition
1292018208, 978-1292018201
