Question
A project will generate the following cash flows. The required rate of return is 10%. If the profitability index is 1.2, what is the initial
A project will generate the following cash flows. The required rate of return is 10%. If the profitability index is 1.2, what is the initial investment for this project?
| Year | Cash flow |
| 1 | $5,000 |
| 2 | $6,000 |
| 3 | $7,000 |
| 4 | $8,000 |
| 5 | $9,000 |
| 6 | $10,000 |
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
