Question: Izki, Inc. is currently considering a five-year project that has an initial investment of OMR 30,000. The future cash inflows from its project for years
Izki, Inc. is currently considering a five-year project that has an initial investment of OMR 30,000. The future cash inflows from its project for years 1 through 5 are the same at OMR 18,500. Izki has a discount rate of 12%. Because of concerns about funds being short to finance all good projects, Izki wants to compute the profitability index (Pl) for each project. What is the PI for Izki's current project? O a. About 2.22 O b. About 1.62 Oc About 1.29 O d. About 0.62 O e About 1.76
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