Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the cash Inflows are as follows: Year 1 =350 OMR; Year 2 =400 OMR; Year 3=450 OMR and Year 4=500 OMR. Use discount rate as 10%. Select one: O a. 2.89 O b. 1.15 O c. None of the options d. 1.41 O e. 1.89

Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the cash Inflows are as follows: Year 1 =350 OMR; Year 2 =400 OMR; Year 3=450 OMR and Year 4=500 OMR. Use discount rate as 10%. Select one: O a. 2.89 O b. 1.15 O c. None of the options d. 1.41 O e. 1.89

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 52P

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Question

Find the profitability index for Oman Clothing
Company if the initial investment is 700 OMR
and the cash Inflows are as follows: Year 1
=350 OMR; Year 2 =400 OMR; Year 3=450
OMR and Year 4=500 OMR. Use discount rate
as 10%.
Select one:
O a. 2.89
O b. 1.15
c. None of the options
d. 1.41
O e. 1.89

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