Question
The cost of project will be $48,600. This project will generate net cash flow of $39,960 in Year 1 and $19,000 in Year 3. The
The cost of project will be $48,600. This project will generate net cash flow of $39,960 in Year 1 and $19,000 in Year 3. The discount rate is 14,3%. If profitability index is used as the criteria investment, should the project be accepted?
a.
Yes; The PI is 1.02.
b.
No; The PI is 0.98.
c.
Yes; The PI is 1.01.
d.
No; The PI is 0.89.
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
4th Edition
0130176028, 9780130176028
