A Project Has Expected Cash Inflows,starting with Year 1,of $2,200,$2,900,$3,500,and

question 65

Multiple Choice

A project has expected cash inflows,starting with year 1,of $2,200,$2,900,$3,500,and finally in year 4,$4,000.The profitability index is 1.14 and the discount rate is 12 percent.What is the initial cost of the project?

• A)$7,899.16
• B)$8,098.24
• C)$8,166.19
• D)$9,211.06
• E)$9,250.00

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