15. Based on the profitability index rule, should a project with the following cash flows be...
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15. Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or why not? Year Cash Flow 0 1 2 3 - $32,100 $11,800 $0 $22,600 A. Yes; The PI is 0.96. B. Yes; The PI is 0.80. C. Yes; The PI is 1.08. D. No; The PI is 0.96. E. No; The PI is 0.80. 15. Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 14 percent? Why or why not? Year Cash Flow 0 1 2 3 - $32,100 $11,800 $0 $22,600 A. Yes; The PI is 0.96. B. Yes; The PI is 0.80. C. Yes; The PI is 1.08. D. No; The PI is 0.96. E. No; The PI is 0.80.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
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