Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: О а. 1.48 O b. None of the options О с. 1.69 O d. 1.83 e. 1.26

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
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Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the
cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR.
Use discount rate as 5%.
Select one:
O a. 1.48
O b. None of the options
O c. 1.69
O d. 1.83
Oe. 1.26
Transcribed Image Text:Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: O a. 1.48 O b. None of the options O c. 1.69 O d. 1.83 Oe. 1.26
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