Question
A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The
A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and
$200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the
profitability index of the project.
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
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