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Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E Investment required $ 12,400 $ 55,000 $
Eddie Corporation is considering the following three investment projects (Ignore income taxes.):
Project C | Project D | Project E | |||||||
Investment required | $ | 12,400 | $ | 55,000 | $ | 100,000 | |||
Present value of cash inflows | $ | 14,830 | $ | 78,950 | $ | 117,160 | |||
The profitability index of investment project D is closest to:
Multiple Choice:
0.30
0.56
0.44
1.44
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