FIN 571 WEEK 5 Multiple Choice Question 78

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

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