Trovato Corporation is considering a project that would require an investment of $65,000. No other cash outflows would be involved. The present value of the cash inflows would be $83,200. The profitability index of the project is closest to (Ignore income taxes.):   Multiple Choice   0.72   0.28   1.28   0.22

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 24P
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Trovato Corporation is considering a project that would require an investment of $65,000. No other cash outflows would be involved. The present value of the cash inflows would be $83,200. The profitability index of the project is closest to (Ignore income taxes.):

 

Multiple Choice
  •  
    0.72
  •  
    0.28
  •  
    1.28
  •  
    0.22
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