QUESTION 5 Garfield Inc is considering a new project that requires an initial investment of $39500 and will generate a net income of $5242 per year, if the project's profitability index is 1.3, the present value of the project's future cash flows is $_ Round to the nearest dollar.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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QUESTION 5
Garfield Inc is considering a new project that requires an initial investment of $39500 and will generate a net income of $5242 per year, if the project's
profitability index is 1.3, the present value of the project's future cash flows is $
Round to the nearest dollar.
Transcribed Image Text:QUESTION 5 Garfield Inc is considering a new project that requires an initial investment of $39500 and will generate a net income of $5242 per year, if the project's profitability index is 1.3, the present value of the project's future cash flows is $ Round to the nearest dollar.
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