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An independent capital budgeting project is expected to have the following cash flows. Year Cash 0 -$225,000 1 $75,000 2 $125,000 3 $200,000 a. Compute
An independent capital budgeting project is expected to have the following cash flows.
Year | Cash |
0 | -$225,000 |
1 | $75,000 |
2 | $125,000 |
3 | $200,000 |
a. Compute the net present value at a 17 percent required rate of return b. Compute the profitability index at a 17 percent required rate of return c. Should the project be accepted?
A. a. $55,290.87 b. 1.25 c. Yes
B. a. -$55,290.87 b. 1.25 c. Yes
C. a. $55,290.87 b. 1.25 c. No
D. a. -$55,290.87 b. 1.25 c. No
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