What is the present value index for Project A?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects
Project A
Project B
Useful life
5 years
5 years
Present value of cash inflows
$84,440
$53,300
Present value of cash outflows
$79,000
$46,000
What is the present value index for Project A?
Multiple Choice
1.069
0.862
1.097
0.886
Transcribed Image Text:Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects Project A Project B Useful life 5 years 5 years Present value of cash inflows $84,440 $53,300 Present value of cash outflows $79,000 $46,000 What is the present value index for Project A? Multiple Choice 1.069 0.862 1.097 0.886
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