Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$87800 $10800 $26000 $33300 $35000 $53400 What's the profitability index of the project, assuming 8.66% discount rate?

Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$87800 $10800 $26000 $33300 $35000 $53400 What's the profitability index of the project, assuming 8.66% discount rate?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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Question

Company Rapid Growth is considering the following project:

Year	0	1	2	3	4	5
Cash Flows	-$87800	$10800	$26000	$33300	$35000	$53400

What's the profitability index of the project, assuming 8.66% discount rate?

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