FIN 571 WEEK 5 Multiple Choice Question 78
Capital rationing. You are considering a project that has an initial cost of $1,200,000. If you take the project, it will produce net cash flows of $300,000 per year for the next six years. If the appropriate discount rate for the project is 10 percent, what is the profitability index of the project?
0.09
1.09
2.09
2.18
1 sold
Other
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Other
strayer university
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FIN 571
13 Aug 2015