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Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company
Present Value of an Annuity of 1 | |||
Periods | 8% | 9% | 10% |
1 | 0.926 | 0.917 | 0.909 |
2 | 1.783 | 1.759 | 1.736 |
3 | 2.577 | 2.531 | 2.487 |
A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $30000 and is expected to generate cash inflows of $11250 at the end of each year for three years. The profitability index for this project is
(A) 0.95.
(B) 0.93.
(C) 1.05.
(D) 1.00.
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