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Calculate the Profitability Index for a Project That Has a Net

Question 14

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 the above

Correct Answer:

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