A manager at Shannons Custom Cabinets is interested in purchasing a computer, software, and peripheral equipment costing

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 is $18,000. Compute the investment’s profitability index. (Round to two decimal points.)

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...