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The Profitability Index for a Project Costing $40,000 and Returning

Question 49

Multiple Choice

The profitability index for a project costing $40,000 and returning $15,000 annually for four years at an opportunity cost of capital of 12 percent is:


A) 0.139
B) 0.320
C) 0.500
D) 0.861 PV = 15,000

Correct Answer:

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