Question
Year 0 CF = -$20,000; Year 1 CF = $3,000; Year 2 CF = $4,000; Year 3 CF = $5,000; Year 4 CF = $6,000;
Year 0 CF = -$20,000; Year 1 CF = $3,000; Year 2 CF = $4,000; Year 3 CF = $5,000; Year 4 CF = $6,000; Year 5 CF = $7,000.
What is the profitability index of the proposed project if the discount rate is 6%?
Group of answer choices
a. 0.03
b.1.03
c.1.63
d.2.03
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
