The management of Leitheiser Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $57,630. The profitability index of the project is closest to (Ignore income taxes.):

A. 0.13
B. 1.13
C. 0.87
D. 0.12


Answer: A

Business

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