Question

Week 8: Quiz i Saved 10 Assume the following information for a capital budgeting proposal with a five-year time horizon: Initial investment : Cost of equipment (zero salvage value) 080 ott $ Annual revenues and costs: 4 points Sales revenues 000 00E $ Variable expenses $ 130,000 Depreciation expense 000 05 $ Fixed out-of-pocket costs 000 07 $ Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 12%, this proposal's profitability index is closest to Multiple Choice 1.12 O 1.16 1.07 O 1.02 Mc