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The Management of Leitheiser Corporation Is Considering a Project That

Question 111

Multiple Choice

The management of Leitheiser Corporation is considering a project that would require an initial investment of $44,000. No other cash outflows would be required. The present value of the cash inflows would be $59,330. The profitability index of the project is closest to (Ignore income taxes.) :


A) 1.35
B) 0.65
C) 0.35
D) 0.26

Correct Answer:

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