The manager at Mannie's Floor Coverings is interested in purchasing a computer and software that would allow

Question:

The manager at Mannie's Floor Coverings is interested in purchasing a computer and software that would allow company salespeople to demonstrate to customers how a finished carpet installation would appear. The total cost of the computer, software, and peripheral equipment has been estimated at $120,000. Based on this cost, the manager has determined that the of the investment is $6,000.
Compute the investment's profitability index.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...