Question

A project with an initial investment of $90,000 and a profitability index of 1.510 also has...

A project with an initial investment of $90,000 and a profitability index of 1.510 also has an internal rate of return of 10%. The present value of the net cash flows is:

0 0
Add a comment Improve this question Transcribed image text
Answer #1

profitability index= present value of the net cash flow/initial investment

Hence  present value of the net cash flow=(1.510*90000)

which is equal to

=$135,900

Add a comment
Know the answer?
Add Answer to:
A project with an initial investment of $90,000 and a profitability index of 1.510 also has...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT