Question
You are given the following information for a potential capital budgeting project: The initial investment is $500.The life of the project is 3 years with
You are given the following information for a potential capital budgeting project: The initial investment is $500.The life of the project is 3 years with the following cash flows during years 1, 2 and 3, respectively: $350, $100 and $250.The WACC is 12%.What is the Profitability Index of this project?
A.1.00
B.1.64
C.0.14
D.1.14
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
