A QUESTION:322 A project requires an investment of $2,500 and has a net present value of $430. If the IRR is 10%, what is the profitability index for the project? a. 0.25 b. 2.33 c. 0.70 d. 1.17

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5TP: Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The...
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A QUESTION:322
A project requires an investment of $2,500 and has a net
present value of $430. If the IRR is 10%, what is the
profitability index for the project?
a. 0.25
b. 2.33
c. 0.70
d. 1.17
Transcribed Image Text:A QUESTION:322 A project requires an investment of $2,500 and has a net present value of $430. If the IRR is 10%, what is the profitability index for the project? a. 0.25 b. 2.33 c. 0.70 d. 1.17
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