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(Ignore income taxes in this problem.) The management of Cantell Corporation is

ID: 2416290 • Letter: #

Question

(Ignore income taxes in this problem.) The management of Cantell Corporation is considering a project that would require an initial investment of $59,000. No other cash outflows would be required. The present value of the cash inflows would be $93,080. The profitability index of the project is closest to:

(Ignore income taxes in this problem.) The management of Cantell Corporation is considering a project that would require an initial investment of $59,000. No other cash outflows would be required. The present value of the cash inflows would be $93,080. The profitability index of the project is closest to:

Explanation / Answer

Cantell Corporation Details Amt $ Initial Investment           59,000.00 Present value of cash inflows           93,080.00 Profitability Index= PV of cash inflows/Initial Investment=                      1.58 So the PI of the project is close to 1.58