Question
ABC Inc is currently considering a project that will produce cash inflows of $12,500 a year for three years followed by $8,500 in Year 4.
ABC Inc is currently considering a project that will produce cash inflows of $12,500 a year for three years followed by $8,500 in Year 4. The cost of the project is $38,000. What is the profitability index if the discount rate is 8 percent?
.85
1.03
1.12
1.01
1.09
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
978-1292200743
