Question
You are analyzing a project and have gathered the following data: Year Cash Flow 0 -$175,000 1 $56,400 2 $61,800 3 $72,000 4 $75,000 Cost
- You are analyzing a project and have gathered the following data:
| Year | Cash Flow |
| 0 | -$175,000 |
| 1 | $56,400 |
| 2 | $61,800 |
| 3 | $72,000 |
| 4 | $75,000 |
Cost of capital is 14%. Based on the profitability index of _____ for this project, you should _____ the project, using the new method.
| 0.1345; accept |
| 0.0859; accept |
| 0.0406; accept |
| -0.0414; reject |
| -0.0785; reject |
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The Principles Of Project Finance
Authors: Rod Morrison
1st Edition
1409439828, 9781409439820
