Lulu Hypermarket plans to open a new branch in Sitra. The branch will initially cost them 26,120 BD and will generate a return of 5,437 BD, 9,221 BD, 6,984 BD and 5,278 BD respectively for the next four years. Calculate the investment's PI if the cost of capital is 12%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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QUESTION 5
Lulu Hypermarket plans to open a new branch in Sitra. The branch will initially cost them 26,120 BD and will generate a return of 5,437 BD, 9,221 BD, 6,984 BD and
5,278 BD respectively for the next four years. Calculate the investment's PI if the cost of capital is 12%.
Transcribed Image Text:QUESTION 5 Lulu Hypermarket plans to open a new branch in Sitra. The branch will initially cost them 26,120 BD and will generate a return of 5,437 BD, 9,221 BD, 6,984 BD and 5,278 BD respectively for the next four years. Calculate the investment's PI if the cost of capital is 12%.
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