Suppose you are considering a project that will have an initial construction cost today and a final The initial cost is $64,000 today, followed by expected annual inflows of $12,000 for the next 9 ye year after the last inflow. If your cost of capital is 5.8%, what is this project's profitability index? a. 1.17 b. 0.75 O c. 0.55 d. 1.60 e. 1.10 f. 0.63 g. 1.32 O h. 0.96

Suppose you are considering a project that will have an initial construction cost today and a final The initial cost is $64,000 today, followed by expected annual inflows of $12,000 for the next 9 ye year after the last inflow. If your cost of capital is 5.8%, what is this project's profitability index? a. 1.17 b. 0.75 O c. 0.55 d. 1.60 e. 1.10 f. 0.63 g. 1.32 O h. 0.96

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 11PROB

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