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7 years ago
The following information is provided by Westwind Systems:

   Project A      Project B     Project C     Project D
Initial investment   $438,000   $218,000   $560,000   $516,000
PV of cash inflows   $582,000   $388,000   $800,000   $394,000
Payback period (years)   3.6   3.2   4.0   2.0
NPV of project   $144,000   $170,000   $240,000   $122,000

Calculate the profitability index for Project A.   Show your calculations and round to two decimal places.
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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Mrgo-breedMrgo-breed
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7 years ago
Will mark this subject solved, thanks
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7 years ago
Happy to help Smiling Face with Open Mouth
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