Asked by Kelvyn almanzar on May 25, 2024
Verified
The profitability index of investment project X is closest to:
A) 0.11
B) 0.88
C) 1.12
D) 0.12
Profitability Index
A financial metric used to evaluate the profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
- Acquire the skills to calculate and understand the profitability index for investment initiatives.
Verified Answer
SM
Learning Objectives
- Acquire the skills to calculate and understand the profitability index for investment initiatives.