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QUESTION: 12 Year Cash Flow 0 -$9,700 1 5,300 2 3,800 With only debt and common 3 4,000 the del Required: (a) What is the profitability index for the cashflows if the relevant discount rate is 10 percent? (b) What is the profitability index for the cashflows if the relevant discount rate is 17 percent? (c) What is the profitability index for the cashflows if the relevant discount rate is 23 percent?

QUESTION: 12 Year Cash Flow 0 -$9,700 1 5,300 2 3,800 With only debt and common 3 4,000 the del Required: (a) What is the profitability index for the cashflows if the relevant discount rate is 10 percent? (b) What is the profitability index for the cashflows if the relevant discount rate is 17 percent? (c) What is the profitability index for the cashflows if the relevant discount rate is 23 percent?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION: 12 Year Cash Flow 0 -$9,700 1 5,300 2 3,800 With only debt and common 3 4,000 the del Required: (a) What is the profitability index for the cashflows if the relevant discount rate is 10 percent? (b) What is the profitability index for the cashflows if the relevant discount rate is 17 percent? (c) What is the profitability index for the cashflows if the relevant discount rate is 23 percent?
Transcribed Image Text:QUESTION: 12 Year Cash Flow 0 -$9,700 1 5,300 2 3,800 With only debt and common 3 4,000 the del Required: (a) What is the profitability index for the cashflows if the relevant discount rate is 10 percent? (b) What is the profitability index for the cashflows if the relevant discount rate is 17 percent? (c) What is the profitability index for the cashflows if the relevant discount rate is 23 percent?
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