Question
Mary Bighair is considering investing in a beauty salon that will cost her $18,000. The after-tax cash flows on the investment should be about $4,000
Mary Bighair is considering investing in a beauty salon that will cost her $18,000. The after-tax cash flows on the investment should be about $4,000 per year for the next 6 years. Her opportunity cost of capital is 10.4 percent. Find the Profitability Index (PI) of buying the beauty salon: (Do not round intermediate calculations; round final answer to four decimals, i.e. 123.4567) Add your answer
Based on the Profitability Index (PI) results you obtained, is the beauty salon a good investment? Why or why not? Explain fully.
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The Home Buyers Check List
Authors: Phillip Adler ,Tammie Adler
1st Edition
B0C7J7BP9G
