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If you can answer both questions will like and comment 15. The relevant discount rate for the following set of cash flows is 14% What
If you can answer both questions will like and comment
15. The relevant discount rate for the following set of cash flows is 14% What is the profitability index? Cash Flow Year - 9,800 4,600 2 3,300 3 3,800 A. 0.89 B. 0.93 C. 0.99 D. 1.03 E. 1.07 16. Kelly's Corner Bakery purchased a lot in Oil City 6 years ago at a cost of $302,000. Today that lot has a market value of $340,000. At the time of the purchase, the company spent $15,000 to level the lot and another $20,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.51 million. What amount should be used as the initial cash flow for this proiect? A. $-1,470,000 B. $-1,850,000 C. $-1,875,000 D. $-1,925,000 E. $-1,945,000Step by Step Solution
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