You are considering a project with an initial cost of $59,700 and annual cash inflows of $10,905 in perpetuity. What discount rate, when applied to this project, will result in a profitability index of 1.00? Options 17.35% 17.81% 18.27% 18.72% 19.18%
You are considering a project with an initial cost of $59,700 and annual cash inflows of $10,905 in perpetuity. What discount rate, when applied to this project, will result in a profitability index of 1.00? Options 17.35% 17.81% 18.27% 18.72% 19.18%
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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Question
You are considering a project with an initial cost of $59,700 and annual
Options
17.35% |
|
17.81% |
|
18.27% |
|
18.72% |
|
19.18% |
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