Question
Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14% compounded annually? Why
Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14% compounded annually? Why or why not?
| Year | Cash Flows |
| 0 | -$32,100 |
| 1 | 11,800 |
| 2 | 0 |
| 3 | 22,600 |
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
9th Edition
978-0134083285, 134083288, 978-0134084015
