Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Rosewill Inc., is contemplating an electric Food Drying project which is expected to last for 9 years. Using the profitability index rule, what is the lowest
a. $14,361.17
b. $10,577.78
c. $18,386.65
d. $15,557.94
e. $16,972.30
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Step 1
PI = Present value of future cashflow / Initial investment
For approval PI should be atleast 1
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