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
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Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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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
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