You estimate that it will cost $33,700 today to start a project, and the project will provide cash inflows of $14,800 in Year 1, $0 in Year 2, and $24,600 in Year 3. Based on the profitability index rule, should the project be accepted if the discount rate is 6.2 percent? Why or why not? Group of answer choices No; the Pl is 1.11
You estimate that it will cost $33,700 today to start a project, and the project will provide cash inflows of $14,800 in Year 1, $0 in Year 2, and $24,600 in Year 3. Based on the profitability index rule, should the project be accepted if the discount rate is 6.2 percent? Why or why not? Group of answer choices No; the Pl is 1.11
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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