Question
The following project is under consideration by Smith's Food Markets, Inc. Smith's requires a 14% rate of return on projects of this nature. Cost Year
The following project is under consideration by Smith's Food Markets, Inc. Smith's requires a 14% rate of return on projects of this nature.
Cost Year 0 = -$200,000
Cash Flows Years 1-3: +$90,000
What is the Profitability Index of the project?
Group of answer choices
a. 1.50
b. 1.67
c. 1.08
d. 1.35
e. 1.04
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Budget Tools Financial Methods In The Public Sector
Authors: Greg G. Chen, Lynne A. Weikart, Daniel W. Williams
2nd Edition
1483307700, 9781483307701
