General Studies · Capital Budgeting
An electronics firm is looking at a project with an initial cost of 1000 and expected cash flows of 400, 500, and 600 over three years. If the cost of capital is 10 percent, what is the Profitability Index?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11.227✓
- 21.100
- 31.326
- 40.955
Correct answer
1.227
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