Question
6D - 2 Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 7.63 percent. What is
6D - 2
Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 7.63 percent. What is the PI of a project if the initial costs are $2,052,338 and the project life is estimated as 7 years? The project will produce the same after-tax cash inflows of $695,824 per year at the end of the year.
Round the answer to two decimal places.
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Analysis For Financial Management
Authors: Robert C. Higgins
12th International Edition
1260091910, 9781260091915
