Estimating the initial cost of the project


The net present value of a project's cash inflows is $9,456 at a 7 percent discount rate. The profitability index is 1.16 and the firm's tax rate is 35 percent. What is the initial cost of the project?

a. $5,298.62

b. $5,910.00

c. $6,146.40

d. $6,782.12

e. $8,151.72

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Finance Basics: Estimating the initial cost of the project
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