A project will cost $56,000 today and is forecasted to earn an inflow of $6,000

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A project will cost $56,000 today and is forecasted to earn an inflow of $6,000 during the first year, followed by 8 annual cash flows of $12,000 thereafter. Cost of capital is 9.8%. What is this project's Profitability Index?

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Management and Cost Accounting

ISBN: 978-1408093887

8th edition

Authors: Colin Drury

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Posted Date: Mar 15, 2024 02:28 AM

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A project will cost $56,000 today and is forecasted to earn an inflow of $6,000

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To calculate the Profitability Index PI of a project we can use the formula Profitability Index Pres... View the full answer

Management and Cost Accounting

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