Trovato Corporation is considering a project that would require an investment of $73,000. No other cash...
Trovato Corporation is considering a project that would require an investment of $73,000. No other cash outflows would be involved. The present value of the cash inflows would be $99,280. The profitability index of the project is closest to (Ignore income taxes.):
Homework Answers
Project profitability index = Net present value / initial investment
= (-73,000+99,280) / 73,000
= 26,280/73,000
= 0.36
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