Question
A new transmission in your truck will cost $7,500. Luckily, it should reduce maintenance expense by $3,525 each year for the next 10 years. What
A new transmission in your truck will cost $7,500. Luckily, it should reduce maintenance expense by $3,525 each year for the next 10 years. What is the profitability index of the transmission? Use a discount rate of 12.3%.
Group of answer choices
2.76
2.99
2.81
2.40
2.62
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
