A project has expected cash inflows of $2,200 in year 1, $2,900 in year 2, $3,500 in year 3, and $4,000 in year 4. After year 4, there will be no further cash flows. If the profitability index is 1.14 and the discount rate is 12%, what is the initial cost of the project? a) $7,899.16 b) $8,098.24 c) $8,166.19 d) $9,211.06
A project has expected cash inflows of $2,200 in year 1, $2,900 in year 2, $3,500 in year 3, and $4,000 in year 4. After year 4, there will be no further cash flows. If the profitability index is 1.14 and the discount rate is 12%, what is the initial cost of the project? a) $7,899.16 b) $8,098.24 c) $8,166.19 d) $9,211.06
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A project has expected
a) $7,899.16
b) $8,098.24
c) $8,166.19
d) $9,211.06
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