Multiple Choice
A project has an initial investment of $95,000. Its four year cash inflows are estimated to be $21,000 in year 1, $23,000 in year 2, $25,000 in year 3, and $27,000 in year 4. If the rate of return is 8%, calculate the project's Profitability Index.
A) 1.83
B) 1.53
C) 1.03
D) 0.83
E) 0.53
Correct Answer:
Verified
Correct Answer:
Verified
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