Mr Ali has an option of investing in one project from the proposed three different projects. The initial investment and cash flows are given below years Cf – project 1 Cf – project 2 Cf – project 3 0 (10,000) (28,000) (22,000) 1 1000 3000 4000 2 880 7000 1000 3 6000 8000 1000 4 4000 12000 9000 5 2000 7500 11500 6 3650 6400 8900 Calculate profitability index for all three projects
Mr Ali has an option of investing in one project from the proposed three different projects. The initial investment and cash flows are given below years Cf – project 1 Cf – project 2 Cf – project 3 0 (10,000) (28,000) (22,000) 1 1000 3000 4000 2 880 7000 1000 3 6000 8000 1000 4 4000 12000 9000 5 2000 7500 11500 6 3650 6400 8900 Calculate profitability index for all three projects
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Question
Mr Ali has an option of investing in one project from the proposed three different projects. The initial investment and cash flows are given below
years
Cf – project 1
Cf – project 2
Cf – project 3
0
(10,000)
(28,000)
(22,000)
1
1000
3000
4000
2
880
7000
1000
3
6000
8000
1000
4
4000
12000
9000
5
2000
7500
11500
6
3650
6400
8900
Calculate profitability index for all three projects
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