Question

A manager at Shannon’s Custom Cabinets is interested in purchasing a computer, software, and peripheral equipment costing $240,000 that would allow company salespeople to demonstrate to customers how a finished carpet installation would appear. Using this cost, the manager has determined that the investment’s net present value is $18,000. Compute the investment’s profitability index. (Round to two decimal points.)



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  • CreatedJune 03, 2014
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