A project with an initial investment of $50,000 and a profitability index of 1.115 also has an internal rate of return of 10%. The present value of net cash flows is:

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
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A project with an initial investment of $50,000 and a
profitability index of 1.115 also has an internal rate of
return of 10%. The present value of net cash flows is:
Transcribed Image Text:A project with an initial investment of $50,000 and a profitability index of 1.115 also has an internal rate of return of 10%. The present value of net cash flows is:
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