ABC Company Limited looking to invest in one of the proposed projects. The cost of that project is $50,000 and cash inflows and outflows are projected for 5 years, as shown in the below table. Calculate the Profitability Index of the Project using the given interest rate and the rate of 9%. The interest rate is 4%. . Year cash inflows Cash outflows Initial Investment 50000 1 20000 2000 2 14000 2000 3 12000 2000 4 12000 2000 5 15000 1000 Interest rate 4%
ABC Company Limited looking to invest in one of the proposed projects. The cost of that project is $50,000 and cash inflows and outflows are projected for 5 years, as shown in the below table. Calculate the Profitability Index of the Project using the given interest rate and the rate of 9%. The interest rate is 4%. . Year cash inflows Cash outflows Initial Investment 50000 1 20000 2000 2 14000 2000 3 12000 2000 4 12000 2000 5 15000 1000 Interest rate 4%
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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ABC Company Limited looking to invest in one of the proposed projects. The cost of that project is $50,000 and
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