An Investment Project Requires a Net Investment of $100,000 and Is

question 83

Multiple Choice

An investment project requires a net investment of $100,000 and is expected to generate annual net cash inflows of $25,000 for 6 years. The firm's cost of capital is 12%. Determine the profitability index for this project.

• A) 1.50
• B) 1.028
• C) 0.028
• D) 0.972

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