Ask Question
BusinessBusiness
5 October, 07:58

A project requires an initial investment of $60,000 and has a project profitability index of 0.329. The present value of the future cash inflows from this investment is:A. $79,740B. $45,147C. $60,000D. Cannot be determined with available data.

+1
Answers (1)
  1. 5 October, 08:06
    0
    The present value of the future cash inflows from this investment is $19,740

    Explanation:

    Profitability Index is a useful tool for ranking project because we can know the amount / value created by per unit of investment.

    Profitability Index = Present value of future cash flow / Initial Investment

    ↔ 0.329 = Present value of future cash inflow / $60,000

    ↔ Present value of future cash inflow = 0.329 * $60,000 = $19,740
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A project requires an initial investment of $60,000 and has a project profitability index of 0.329. The present value of the future cash ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Knowledge check what are the possible weaknesses of this peer approach to valuation?
Answers (1)
Which company is experimenting with the management of the final mile of delivery in some markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?
Answers (1)
What does it mean to cleanse data before it is stored in a data warehouse?
Answers (1)
Edward and first star company enter into an oral contract under which edward agrees to provide delivery service for first star for nine months. this contract is enforceable by
Answers (1)
In the presence of shortages, why would a firm, such as a restaurant with people waiting for a table or a theater with people waiting for a ticket, not raise prices when doing so would seem to increase profits?
Answers (1)
New Questions in Business
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.
Answers (1)
Older adults who participated in 20 one-hour video game training sessions with the program lumosity showed reduction in their:
Answers (1)
The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Answers (1)
What percentage of federal revenues is made up of corporate taxes
Answers (1)
F Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably
Answers (1)
Home » Business » A project requires an initial investment of $60,000 and has a project profitability index of 0.329. The present value of the future cash inflows from this investment is:A. $79,740B. $45,147C. $60,000D. Cannot be determined with available data.
Sign Up Forgot Password?