(1) 2.36 2).901 3) 1.44 4) 1.50 Delta, Inc. wishes to purchase a new auto spray...

 

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(1) 2.36 2).901 3) 1.44 4) 1.50 Delta, Inc. wishes to purchase a new auto spray painting machine to hide rust on used cars. The following cash flows are expected: Machine A $5,000 5) 1.08 Current Cost Cash Receipts: Year 1 Year 2 Year 3 Year 4 Year 5 Using the above information, if the cost of capital is 11%, what is the profitability index for Machine A? 1,456 1,456 1,456 1,456 1,456 Machine B $7,700 3,000 3,000 3,000 3,000 3,000 (1) 2.36 2).901 3) 1.44 4) 1.50 Delta, Inc. wishes to purchase a new auto spray painting machine to hide rust on used cars. The following cash flows are expected: Machine A $5,000 5) 1.08 Current Cost Cash Receipts: Year 1 Year 2 Year 3 Year 4 Year 5 Using the above information, if the cost of capital is 11%, what is the profitability index for Machine A? 1,456 1,456 1,456 1,456 1,456 Machine B $7,700 3,000 3,000 3,000 3,000 3,000

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