A project requires an investment of $3,000 and has a net present value of $600. If the IRR is 12%, what is the profitability index for the project? a. 0.35 b. 1.20 c. 2.15 d. 0.80
A project requires an investment of $3,000 and has a net present value of $600. If the IRR is 12%, what is the profitability index for the project? a. 0.35 b. 1.20 c. 2.15 d. 0.80
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A project requires an investment of $3,000 and has a net present value of $600.
If the IRR is 12%, what is the profitability index for the project?
a. 0.35
b. 1.20
c. 2.15
d. 0.80
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