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%

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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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%

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