Question
Dawntreader Landscaping is considering purchasing $490,000 of new lawn equipment and they anticipate the additional equipment will result in cash flows as below. Their weighted
Dawntreader Landscaping is considering purchasing $490,000 of new lawn equipment and they anticipate the additional equipment will result in cash flows as below. Their weighted average cost of capital is 8.75%.
Year Cash flow
1 87,000
2 113,000
3 137,000
4 152,000
5 168,000
The profitability index for the project is _____________
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
