A project with an initial cost of 30800 is expected to provide cash flow of 11,100 11,900, 15000 and 9500 over the next four year, respectively if the required return is 9.3 percent what is the projects profability index?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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A project with an initial cost of 30800 is expected to provide cash flow of 11,100 11,900, 15000 and 9500 over the next four year, respectively if the required return is 9.3 percent what is the projects profability index?
1.139
1.242
1.035
.805
1.398
Transcribed Image Text:1.139 1.242 1.035 .805 1.398
A project with an initial cost of $30,800 is expected to provide cash flows of $11,100, $11,900, $15,000, and $9,500 over the next
four years, respectively. If the required return is 9.3 percent, what is the project's profitability index?
Multiple Choice
1.139
1.242
1.035
Transcribed Image Text:A project with an initial cost of $30,800 is expected to provide cash flows of $11,100, $11,900, $15,000, and $9,500 over the next four years, respectively. If the required return is 9.3 percent, what is the project's profitability index? Multiple Choice 1.139 1.242 1.035
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