Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the cash Inflows are as follows: Year 1 =350 OMR; Year 2 =400 OMR; Year 3=450 OMR and Year 4=500 OMR. Use discount rate as 10%. Select one: O a. 2.89 O b. 1.15 O c. None of the options d. 1.41 O e. 1.89

Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the cash Inflows are as follows: Year 1 =350 OMR; Year 2 =400 OMR; Year 3=450 OMR and Year 4=500 OMR. Use discount rate as 10%. Select one: O a. 2.89 O b. 1.15 O c. None of the options d. 1.41 O e. 1.89

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Find the profitability index for Oman Clothing
Company if the initial investment is 700 OMR
and the cash Inflows are as follows: Year 1
=350 OMR; Year 2 =400 OMR; Year 3=450
OMR and Year 4=500 OMR. Use discount rate
as 10%.
Select one:
O a. 2.89
O b. 1.15
c. None of the options
d. 1.41
O e. 1.89

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