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Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E Investment required $ 11,200 $ 43,000 $
Eddie Corporation is considering the following three investment projects (Ignore income taxes.):
Project C | Project D | Project E | |||||||
Investment required | $ | 11,200 | $ | 43,000 | $ | 88,000 | |||
Present value of cash inflows | $ | 11,830 | $ | 50,990 | $ | 98,560 | |||
The profitability index of investment project D is closest to:
Multiple Choice
A.0.19
B. 1.19
C. 0.81
D. 0.16
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