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Saham, Inc. is currently considering a five-year project that has an initial investment of OMR 60,000. The future cash inflows from its project for years
Saham, Inc. is currently considering a five-year project that has an initial investment of OMR 60,000. The future cash inflows from its project for years 1 through 5 are the same at OMR 14,000. Saham has a discount rate of 11%. Because of concerns about funds being short to finance all good projects, Saham wants to compute the profitability index (Pl) for each project. What is the pl for Saham's current project? Select one: O a. About 0.84 O b. About 0.86 O c. About 1.48 O d. About 1.20 O e. About 1.11
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