Fundamental Accounting Principles
Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
Question
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Chapter 26, Problem 12E
To determine

(a) To calculate:

Net present value of the project.

To determine

(b) To calculate:

Profitability index.

Introduction:

Profitability index is an index which shows relationship between present value of future cash inflows and initial investment. So this index is very important tool for evaluating an investment proposal.

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