Question
A project has an initial investment of $196,600 and will generate 5 annual cash flows of $59,500. Assume a cost of capital of 14%. Calculate
A project has an initial investment of $196,600 and will generate 5 annual cash flows of $59,500. Assume a cost of capital of 14%. Calculate the profitability index (PI).
The present value of the cash inflows is $ ___. (Round to the nearest cent.)
The profitability index is ______. (Round to two decimal places.)
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Money Locates You
Authors: Joan Ekobena
1st Edition
1774821257, 978-1774821251
