Question
A project has an initial investment of $203,700 and will generate 5 annual cash flows of $60,500. Assume a cost of capital of 14%. Calculate
A project has an initial investment of
$203,700
and will generate
5
annual cash flows of
$60,500.
Assume a cost of capital of
14%.
Calculate the profitability index (PI).
The present value of the cash inflows is
$00.
(Round to the nearest cent.)
The profitability index is
00.
(Round to two decimal places.)
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
