You have purchased a canning machine for $7,000. You expect the machine to save your company $3,775 each year for the next 10 years. What is the profitability index of the machine? Use a discount rate of 10.9%.
You have purchased a canning machine for $7,000. You expect the machine to save your company $3,775 each year for the next 10 years. What is the profitability index of the machine? Use a discount rate of 10.9%.
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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Transcribed Image Text:You have purchased a canning machine for $7,000. You expect the machine to save your company
$3,775 each year for the next 10 years. What is the profitability index of the machine? Use a discount
rate of 10.9%.
3.19
3.25
3.41
3,49
3.07
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