Examlex
A project has an initial cost of $38,300 and anticipated cash flows of $9,200,$18,700,$14,600 for Years 1 to 3,respectively.What is the profitability index value if the required return is 9.5 percent?
Direct Method
A technique used in cost accounting to allocate service department costs directly to production departments without considering service department interactions.
Operating Activities
The day-to-day tasks involved in managing a business which include production, sales, and the purchase of inventory.
Cash Dividends
A distribution of a company's earnings to shareholders in the form of cash payments.
Direct Method
A way of preparing a cash flow statement where actual cash inflows and outflows from operational activities are listed directly.
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