Question: Suppose you are considering a project that will have an initial construction cost today and a final cleanup cost at the end of the project's
Suppose you are considering a project that will have an initial construction cost today and a final cleanup cost at the end of the project's lifetime. The initial cost $58,000 today, followed by expected annual inflows of $14,000 for the next 8 years, followed by a final outflow of $36,000 one year after the last inflow. If your cost of capital is 5.6%, what is this project's profitability index? a. 1.17 b. 0.75 c.0.55 d. 1.60 e. 1.10 @ 1.0.63 8.1.32 h. 0.96
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