Solved

The Net Present Value of a Project's Cash Inflows Is

Question 26

Multiple Choice

The net present value of a project's cash inflows is $2,716 at a discount rate of 12 percent.The profitability index is 1.09 and the firm's tax rate is 34 percent.What is the initial cost of the project?


A) $2,314.07
B) $2,018.50
C) $2,428.32
D) $2,491.74
E) $2,066.67

Correct Answer:

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