Multiple Choice
Barnacle Bob's Fish and Tackle Shop is planning an expansion. The initial investment is $480,000 and anticipates cash inflows as listed below. The cost of capital is 12.2%. Based on the profitability index, should Barnacle Bob go ahead with the project? 
A) No, the profitability index is 2.
B) No, the profitability index is .95
C) Yes, the profitability index is 1.18
D) Yes, the profitability index is .78
Correct Answer:
Verified
Correct Answer:
Verified
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