Question
Nelsons Industrial Supply is considering a project that has projected cash inflows of $6,000 a year for 4 years. The initial cost of the project
Nelsons Industrial Supply is considering a project that has projected cash inflows of $6,000 a year for 4 years. The initial cost of the project is $16,800 and the required return is 12.75 percent. Should this project be accepted based on the profitability index criterion? Why or why not?
no; because the PI is .58
yes; because the PI is .58
yes; because the PI is 1.07
no; because the PI is 1.07
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Fundamentals Of Institutional Asset Management
Authors: Frank J Fabozzi, Francesco A Fabozzi
1st Edition
9811220034, 9789811220036
