Question: The manager at Mannie's Floor Coverings is interested in purchasing a computer and software that would allow company salespeople to demonstrate to customers how a
The manager at Mannie's Floor Coverings is interested in purchasing a computer and software that would allow company salespeople to demonstrate to customers how a finished carpet installation would appear. The total cost of the computer, software, and peripheral equipment has been estimated at $120,000. Based on this cost, the manager has determined that the net present value of the investment is $6,000.
Compute the investment's profitability index.
Compute the investment's profitability index.
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