Multiple Choice Question 93
The following information is available for a potential
investment for Panda Company:
Initial investment | $110000 |
Net annual cash inflow | 20000 |
Net present value | 45150 |
Salvage value | 10000 |
Useful life | 10 yrs. |
The potential investment’s profitability index is
1.41. |
2.44. |
3.55. |
5.50. |
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