Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1=1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...
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Find the profitability index for Oman Air conditioner Company if the initial
investment is 4000 OMR and the cash Inflows are as follows: Year 1=1350
OMR; Year 2 =1400 OMR; Year 3-1450 OMR and Year 4=1500 OMR. Use
discount rate as 5%.
Select one:
Transcribed Image Text:Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1=1350 OMR; Year 2 =1400 OMR; Year 3-1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one:
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ISBN:
9781947172609
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OpenStax
Publisher:
OpenStax College