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The Following Information Is Provided by Chelsa Building Systems Calculate the Profitability Index for Project B

question 9

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The following information is provided by Chelsa Building Systems:
 Project A  Project B  ProjectC  Project D  Initial investment $438,000$218,000$560,000$516,000 PV of cash inflows $582,000$388,000$800,000$394,000 Payback period (years) 3.63.24.02.0 NPV of project $144,000$170,000$240,000($122,000)\begin{array}{ccccc} & \text { Project A } & \text { Project B } & \text { ProjectC } & \text { Project D } \\\text { Initial investment } & \$ 438,000 & \$ 218,000 & \$ 560,000 & \$ 516,000\\\text { PV of cash inflows } & \$ 582,000 & \$ 388,000 & \$ 800,000 & \$ 394,000 \\\text { Payback period (years) } & 3.6 & 3.2 & 4.0 & 2.0 \\\text { NPV of project } & \$ 144,000 & \$ 170,000 & \$ 240,000 & (\$ 122,000)\end{array} Calculate the profitability index for Project B.Show your calculations and round to two decimal places.

Understand the concept of price elasticity of demand and how to calculate it using the midpoint method.
Recognize the relationship between price changes and total revenue, especially in terms of elasticity.
Understand the income elasticity of demand and how it differs from price elasticity.
Learn to distinguish between short-run and long-run elasticities and their implications.

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Company's Image

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Appropriate Phrase

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