Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E $43,000 $50,990 Investment required $11, 200 $11,830 $88,000 $98,560 Present value of cash inflows The profitability index of investment project D is closest to: Multiple Choice 0.19 1.19 0.81 0.16

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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Eddie Corporation is considering the following three investment projects (Ignore income taxes.):
Project C Project D Project E
$43,000
$50,990
Investment required
$11,200
$11,830
$88,000
$98,560
Present value of cash inflows
The profitability index of investment project D is closest to:
Multiple Choice
0.19
1.19
0.81
0.16
Transcribed Image Text:Eddie Corporation is considering the following three investment projects (Ignore income taxes.): Project C Project D Project E $43,000 $50,990 Investment required $11,200 $11,830 $88,000 $98,560 Present value of cash inflows The profitability index of investment project D is closest to: Multiple Choice 0.19 1.19 0.81 0.16
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