Multiple Choice
Calculate the profitability index of a 20-year project with a cost of $400,000 and annual cash flows of $50,000 in years 1-10 and $25,000 in years 11-20. The company's required rate of return is 10%.
A) 0.92
B) 0.98
C) 1.02
D) 1.08
E) 1.15
Correct Answer:
Verified
Correct Answer:
Verified
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