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
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects
Project A
Project B
Useful life
5 years
5 years
Present value of cash inflows
$84,440
$53,300
Present value of cash outflows
$79,000
$46,000
What is the present value index for Project A?
Multiple Choice
1.069
0.862
1.097
0.886
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