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Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E Investment required $ 12,200 $ 53,000 $
Eddie Corporation is considering the following three investment projects (Ignore income taxes.):
Project C | Project D | Project E | |||||||
Investment required | $ | 12,200 | $ | 53,000 | $ | 98,000 | |||
Present value of cash inflows | $ | 14,330 | $ | 74,290 | $ | 114,060 | |||
The profitability index of investment project D is closest to:
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0.40
-
1.40
-
0.60
-
0.29
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