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Question 33 of 50 1 Points Renmax Lid has made an initial investment of R1000 000 in a new project. The firm's cost of capital
Question 33 of 50 1 Points Renmax Lid has made an initial investment of R1000 000 in a new project. The firm's cost of capital is 13%. The investment is expected to generate the following cash inflows over the next five years: Year 1: R 50 000 Year 2: R 60 000 Year 3: R 70 000 Year 4: R400 000 Year 5: R500 000 The profitability index (PI) is ... therefore, the investment should ... A. 0.66; be undertaken. B. 0.66; not be undertaken. O c. 1.52; be undertaken. OD. 1.52; not be undertaken. Reset Selection Question 34 of 50 1 Points The present value of the cash flows of an investment is expected to total R250 000. The profitability index is calculated at 1.40. Calculate the initial investment. A. R127 562.43 B. R148 571.43 OC. R162 857.14 OD. R178 571.43
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