Question
The project has a payback period of 3.25 years. If the company's discount rate is 8% find the profabitlity index of the investment. Years Cash
The project has a payback period of 3.25 years. If the company's discount rate is 8% find the profabitlity index of the investment.
Years Cash Flows
0. = ? HOW DO YOU FIND THIS ? (Financial calculator ?)
1. = $200,000
2. = $300,000
3. =$400000
4. = $500,000
ANSWER IS : investment=200000+300000+400000+500000 x 0.25 WHY IS IT x0.25 ???????? where did that come from
PLEASE DONT COPY PASTE ANSWER LIKE LAST TIME ! I want to know how the initial investment is calculated and where did the 0.25 come from. Also, Can a financial calculator be used to find the answer ?
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The Principals Guide To School Budgeting
Authors: Richard D. Sorenson, Lloyd M. Goldsmith
3rd Edition
1506389457, 978-1506389455
