MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
17th Edition
ISBN: 9781265574826
Author: Garrison
Publisher: MCG
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Chapter 14, Problem 5F15
To determine

Profitability index:

Relationship between the benefits of a project and cost is identifies with the help of profitability index. A formula is used in order to identify the relationship which is as follows:

MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL, Chapter 14, Problem 5F15

  Profitability Index Ratio=Present Value of future cash flowsInitial Investment

The project profitability index.

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Chapter 14 Solutions

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