The Relevant Discount Rate Is 14 Percent for a Project

question 43

Multiple Choice

The relevant discount rate is 14 percent for a project with cash flows of -$9,200, $4,600, $3,300, and $3,800 for Years 0 to 3, respectively. What is the profitability index?

• A) .96
• B) .99
• C) .93
• D) 1.04
• E) 1.08

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