(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects:MNInitial investment$46,000$75,000$95,000Present value of cash flows$49,850$80,250$102,500What it the profitability index for investment project O?.079927O.065O.073

Profitability Index is a financial tool that compares that the costs and benefits of a project with…

(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects: M Initial investment $46,000 $75,000 $95,000 Present value of cash flows $49,850 $80,250 $102,500 What it the profitability index for investment project O? O.079 O.927 .065 .073 OO00

(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects: M Initial investment $46,000 $75,000 $95,000 Present value of cash flows $49,850 $80,250 $102,500 What it the profitability index for investment project O? O.079 O.927 .065 .073 OO00

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 1E: A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash...

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Question

(Ignore income taxes in this problem.) Your Corporation is considering the following three investment projects:
M
N
Initial investment
$46,000
$75,000
$95,000
Present value of cash flows
$49,850
$80,250
$102,500
What it the profitability index for investment project O?
.079
927
O.065
O.073

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