An investment of $20,000 will create a perpetual aft er-tax cash flow of $2,000. The required rate

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An investment of $20,000 will create a perpetual aft er-tax cash flow of $2,000. The required rate of return is 8 percent. What is the investment’s profitability index?

a. 1.00

b. 1.08

c. 1.16

d. 1.25

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 12:54 AM

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An investment of $20,000 will create a perpetual aft er-tax cash flow of $2,000. The required rate

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d is correct The present ...View the full answer

Fundamentals of corporate finance

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