Multiple Choice
An investment project requires a net investment of $100,000 and is expected to generate annual net cash inflows of $25,000 for 6 years. The firm's cost of capital is 12%. Determine the profitability index for this project.
A) 1.50
B) 1.028
C) 0.028
D) 0.972
Correct Answer:
Verified
Correct Answer:
Verified
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