Find the profitability index for Shanfari Company if the initial investment is 7900 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 22400 OMR; Year 3=2450 OMR and Year 4=2500 OMR. Use discount rate as 5.05%. Select one: O a. 1.15 Accept O b. 0.96 Reject O C.0.96 Accept O d. None of the options O e. 1.15 Reject

Find the profitability index for Shanfari Company if the initial investment is 7900 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 22400 OMR; Year 3=2450 OMR and Year 4=2500 OMR. Use discount rate as 5.05%. Select one: O a. 1.15 Accept O b. 0.96 Reject O C.0.96 Accept O d. None of the options O e. 1.15 Reject

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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