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An Investment Project Requires a Net Investment of $100,000 and Is

Question 18

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 percent.Determine the profitability index for this project.


A) 1.50
B) 1.028
C) .028
D) .972

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