Question 32 Consider this data: Year 1 Year 2 Year 3 Initial Investment Outlay Year Project A: 4 Year 5 Net Cost of New ($800,000) $600,000 $450,000 $300,000 Additional Revenue $200,000 $100,00.000 180,000 135,000 90,000 Additional Operating Costs 60,000 30,000 160,000 160,000 160,000 Depreciation: 160,000 160.000 260,000 155,000 50,000 EBT -20,000 -90,000 -91.000 -54,250 - 17,500 Less Tax at 3595 7,000 31.500 $169,999 $100.750 $32,500 Net Income $-13,000 $-58,500 Calculate the Productivity Index for Project A assuming WACC - 11.41% O About 1.00x O 1.13x 0 29x O 1.43x Previous Next