QM Motors invests $40 million in a new project which is expected to generate the...
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Accounting
QM Motors invests $40 million in a new project which is expected to generate the following cash flows:
Years 1 2 3 4 Cash Flows ($ millions) 10 10 15 15 Given that the companys required rate of return is 12%, the projects profitability index is closest to:
Select one:
a. 0.82
b. 0.93
c. 1.25
d. None of the choices.
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