A project had a staged investment distributed over the 6-year contract period. For the cash flows shown
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A project had a staged investment distributed over the 6-year contract period. For the cash flows shown (next page) and an interest rate of 10% per year, determine the profitability index and determine if the project was economicallyjustified.
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Year Investment, $1000 -25 0 -10 0 -5 0 0 NCF, $1000 per year0 5 7 9 13 15
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In 1000 units PW of NCF 5PA 10 6 2PG 10 6 543553 296842 4...View the full answer
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