Question
You are considering investing in a start up project at a cost of $100,000. You expect the project to return $38,000, $45,000 and $65,000 to
You are considering investing in a start up project at a cost of $100,000. You expect the project to return $38,000, $45,000 and $65,000 to you in the next three years. Given the cost of capital is 20%, what is the profitability index of the project (following the formula in the textbook: PI= NPV/Resource Consumed)?
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
