Profitability index of a capital investment project
What is the profitability index of a capital investment project that cost the firm $100,000 and has cash flows of $20,000, $25,000, $40,000, $50,000 in years one through four, respectively? The cost of capital is 9%
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What will be the amount of interest paid in nominal dollars each year of the bond's life? What will be the face (nominal) value of the bond at the end of each year of its life?
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