A company is planning to expand its business is costing OMR 24271. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 1 11055 2 13300 3 12500 4 14500   Select one: a. none of the options b. 0.510 c. 23311.416 d. 1.960 e. 1.974

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...
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A company is planning to expand its business is costing OMR 24271. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008%

Years

Machine A

1

11055

2

13300

3

12500

4

14500


 

Select one:
a. none of the options
b. 0.510
c. 23311.416
d. 1.960
e. 1.974
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