Assume that a company is considering a capital investment project with a four year timetarizon and the following cash flows:
Cost of new equipment $ 210,000
Working capital required $ 30,000
Annual net cash inflows $ 100,000
Maintenance and repair is third year $ 40,000
Salvage value of equipment in fourth year $ 30,000 Click here to view Eurib140-1 and Exlibil143-2. to determine the appropriate discount factors, using the teules provided Assuming the company's required rate of return is 20%, the profitability index of the project is closest to Me Choice 119 1.31
115. 1.05.
