A project with an initial investment of $42,000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is: A. $42,000 B. $52,038 C. $47,040 D. $33,898

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 10P
icon
Related questions
Question

Solve this question

A project with an initial investment of $42,000 and a
profitability index of 1.239 also has an internal rate of
return of 12%. The present value of net cash flows is:
A. $42,000
B. $52,038
C. $47,040
D. $33,898
Transcribed Image Text:A project with an initial investment of $42,000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is: A. $42,000 B. $52,038 C. $47,040 D. $33,898
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT