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A Project Has Expected Cash Inflows, Starting with Year 1

Question 111

Multiple Choice

A project has expected cash inflows, starting with Year 1, of $900, $1,200, $1,500, and finally in Year 4, $2,000.The profitability index is 1.11 and the discount rate is 12 percent.What is the initial cost of the project?


A) $3,899.16
B) $4,098.24
C) $3,692.71
D) $3,211.06
E) $4,250.00

Correct Answer:

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