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10  Given the following data: Present Investment Required $17,000 Net Present Value $480 Annual cost Savings $? Discount Rate 15% Life of the Project 12 years Based on the data given, what would be the profitability index? (Ignore income taxes in this problem.)   Select one: a. 3.05%. b. 35.8%. c. 2.82%. d. Cannot be determined from the information given

10  Given the following data: Present Investment Required $17,000 Net Present Value $480 Annual cost Savings $? Discount Rate 15% Life of the Project 12 years Based on the data given, what would be the profitability index? (Ignore income taxes in this problem.)   Select one: a. 3.05%. b. 35.8%. c. 2.82%. d. Cannot be determined from the information given

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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10

 Given the following data:

Present Investment Required

$17,000

Net Present Value

$480

Annual cost Savings

$?

Discount Rate

15%

Life of the Project

12 years


Based on the data given, what would be the profitability index? (Ignore income taxes in this problem.)

 

Select one:
a. 3.05%.
b. 35.8%.
c. 2.82%.
d. Cannot be determined from the information given
 
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