Multiple Choice
A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the
Profitability index of the project.
A) 1.76
B) 2.06
C) 2.16
D) 2.46
E) 2.76
Correct Answer:
Verified
Correct Answer:
Verified
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