Multiple Choice
Ben Lake Enterprises is currently considering a project that will produce cash inflows
Of $3500 a year for three years followed by $1200 a year for two more years.The cost of the project is $10 000.What is the profitability index if the discount rate is 7 per cent?
A) 0.96
B) 0.98
C) 1.00
D) 1.06
E) 1.10
Correct Answer:
Verified
Correct Answer:
Verified
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