Question
Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 8.31 percent. What is the PI of
Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 8.31 percent. What is the PI of a project if the initial costs are $1,656,922 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of $562,019 per year at the end of the year. Round the answer to two decimal place
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
