Question
Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E Investment required $ 11,100 $ 42,000 $
Eddie Corporation is considering the following three investment projects (Ignore income taxes.):
| Project C | Project D | Project E | |||||||
| Investment required | $ | 11,100 | $ | 42,000 | $ | 87,000 | |||
| Present value of cash inflows | $ | 11,580 | $ | 48,660 | $ | 97,010 | |||
The profitability index of investment project D is closest to:
Multiple Choice
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0.16
-
1.16
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0.84
-
0.14
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IRS Audit Protection And Survival Guide Bars And Restaurants
Authors: Gerald F. Bernard, Daniel J. Baran
1st Edition
0471166375, 978-0471166375
