Kikwetu Limited is considering investing in a project with the following expected cashflows: Year (C.F) 1 35,500 2 39,000 3 25,000 4 15,000 The cost of the project = Sh. 100,000 Compute the approximate profitability index of the project
Kikwetu Limited is considering investing in a project with the following expected cashflows: Year (C.F) 1 35,500 2 39,000 3 25,000 4 15,000 The cost of the project = Sh. 100,000 Compute the approximate profitability index of the project
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 7P
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Kikwetu Limited is considering investing in a project with the following expected cashflows:
Year |
(C.F) |
1 |
35,500 |
2 |
39,000 |
3 |
25,000 |
4 |
15,000 |
|
|
The cost of the project = Sh. 100,000
Compute the approximate profitability index of the project
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