A project will generate the following cash flows. The required rate of return is 15%. If the profitability index is 1.7, what is the initial investment for this project? Year Cash flow 1 $15,000 2 $16,000 3 $17,000 4 $18,000 5 $19,000 Select one: a. $26,217.06 b. $31,460.47 c. $32,974.98 d. $37,752.57 e. $95,297.70
A project will generate the following cash flows. The required rate of return is 15%. If the profitability index is 1.7, what is the initial investment for this project? Year Cash flow 1 $15,000 2 $16,000 3 $17,000 4 $18,000 5 $19,000 Select one: a. $26,217.06 b. $31,460.47 c. $32,974.98 d. $37,752.57 e. $95,297.70
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 10P
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Question
A project will generate the following cash flows. The required
Year |
Cash flow |
1 |
$15,000 |
2 |
$16,000 |
3 |
$17,000 |
4 |
$18,000 |
5 |
$19,000 |
Select one:
a. $26,217.06
b. $31,460.47
c. $32,974.98
d. $37,752.57
e. $95,297.70
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