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number 6 is correct just need help on 7 thank yiu ! Assume the firm invests $90,000 today to get $29,000 at Year 1 (ie,
number 6 is correct just need help on 7 thank yiu !
Assume the firm invests $90,000 today to get $29,000 at Year 1 (ie, one year from now). $26,000 at Year 2, 536,000 at Year 3, $35.000 at Year 4. $27.500 at Year 5. and $16.500 at Year 6. Assuming the required rate of return for the firm's industry is 10.7%, what is this project's profitability index? 1.24 0.36 1.36 024 Question 7 2.5 pts Same facts as above, but assume that the firm expands its Investment such that the revenues will go up by 20%, but the discount rate will also increase to 16.5%. What is the new profitability index? . 1.64 1:36 064 140 Step by Step Solution
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