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Find the profitability index for the project

Francisco Trujillo is contemplating a project with an initial investment of $50,000. Francisco also has a discount rate of 8%. If the project has estimated net annual cash flows of $12,000 for the next six years, what is the profitability index for the project?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find the profitability index for the project

Reference No:- TGS0672377

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the present value of the future cash inflows

Q : What is accounts receivable turnover

Q : Analysing a brake disc in a braking system

Q : Determine the difference in variable costing and absorption

Q : Find the profitability index for the project

Q : What was the standard materials price per pound

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Q : Find cash payback period if depreciation expense is given

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find the profitability index for the project

Reference No:- TGS0672377

Recent Questions Asked Finance Basics

Q : What is the present value of the future cash inflows

Q : What is accounts receivable turnover

Q : Analysing a brake disc in a braking system

Q : Determine the difference in variable costing and absorption

Q : Find the profitability index for the project

Q : What was the standard materials price per pound

Q : Find the expected rate of return

Q : Determining the square feet of space

Q : Find cash payback period if depreciation expense is given

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