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The following information is provided by Cupola Systems Initial investment PV of cash inflows Payback period (years) NPV of project Project A $420,000 $582,000 3.6
The following information is provided by Cupola Systems Initial investment PV of cash inflows Payback period (years) NPV of project Project A $420,000 $582,000 3.6 $ 162,000 Project B $200,000 $384.000 3.2 $184,000 Project C $550,000 $812,000 4.0 $262,000 Project D $520,000 $400,000 2.0 ($120,000) Calculate the profitability index for Project A. (Round your answer to two decimal places.) O A. 1.39 OB. 1.04 OC. 1.67 OD. 1.07 The following details are provided by Beckett Company: $2,000,000 12% Initial investment Discount rate Yearly cash inflows 1 2 3 $716,000 $658.000 $658,000 $658,000 $716,000 4 5 Present Value of $ 1: 10% 0.909 2 0.826 3 0.751 4 0.683 5 0.621 11% 0.901 0.812 0.731 0.659 0.593 12% 0.893 0.797 0.712 0.636 0.567 13% 0.885 0.783 0.693 0.613 0.543 Calculate the NPV of the project. O A. $950,000 OB. $456,770 O c. $250,000 OD. $1,005,000
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