Question
Lynn is considering a project with an initial cost of $64,000 and annual cash inflows of $15,000 a year for six years. What discount rate,
Lynn is considering a project with an initial cost of $64,000 and annual cash inflows of $15,000 a year for six years. What discount rate, when applied to this project, will produce a profitability index of 1.0?
A: 10.71% B: 8.05% C: 10.11% D: 7.65%
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
