Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find
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Question:
Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 14.35 percent. The initial outlay for the project is $303,020. The project will produce the following end-of-the-year after-tax cash inflows of
Year 1: $165,242
Year 2: $176,749
Year 3: $476,324
Year 4: $302,489
Round the answer to two decimal places.
Related Book For
Introduction to Corporate Finance
ISBN: 978-0324657937
2nd edition
Authors: Scott B. Smart, William L Megginson
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