Quiksilver Enterprises is evaluating a project that requires an investment of $6,200 and has a net present value of $1,116. If the internal rate of return (IRR) is 11%, what is the profitability index for the project? a. 1.10 b. 0.82 C. 1.18 d. 1.25

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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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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What is the profitability index for the project?

Quiksilver Enterprises is evaluating a project
that requires an investment of $6,200 and has a
net present value of $1,116. If the internal rate of
return (IRR) is 11%, what is the profitability
index for the project?
a. 1.10
b. 0.82
C. 1.18
d. 1.25
Transcribed Image Text:Quiksilver Enterprises is evaluating a project that requires an investment of $6,200 and has a net present value of $1,116. If the internal rate of return (IRR) is 11%, what is the profitability index for the project? a. 1.10 b. 0.82 C. 1.18 d. 1.25
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