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    Contemporary Financial Management Study Set 1
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    Exam 10: Capital Budgeting: Decision Criteria and Real Option Considerations
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    Calculate the Profitability Index for a Project That Has a Net
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Calculate the Profitability Index for a Project That Has a Net

Question 56

Question 56

Multiple Choice

Calculate the profitability index for a project that has a net present value equal to -$10,000.The project's net investment is $20,000, and the firm has a 40 percent marginal tax rate.


A) -0.5
B) 0
C) 0.8
D) None of these

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