Answer:
12/25
Step-by-step explanation:
1/2 = 25/50
1) 3/5 = 30/50
2) 12/25 = 24/50 (closest to 25/50)
3) 27/50
Answer: false
Step-by-step explanation:
The profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent is: 15%.
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Profitability index</h3>
First step is to find the Net present value (NPV) of the given cash flow using discount rate PVF 16% and PV of cash flow which in turn will give us net present value of 49.7.
Second step is to calculate the profitability index
Profitability index = 49.7/340
Profitability index = .15×100
Profitability index=15%
Therefore the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent is: 15%.
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