Multiple Choice
A project has an initial investment of $150,000. Its four year cash inflows are estimated to be $50,000 in year 1, $80,000 in years 2 and 3, and $50,000 in year 4. If the rate of return is 12%,
Calculate the project's Profitability Index.
A) 1.31
B) 1.41
C) 1.51
D) 1.61
E) 1.71
Correct Answer:
Verified
Correct Answer:
Verified
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