A project has been assigned a required annual accounting return of 14% and a required discount rate of 9%. The initial cost of the project is $25,000. The project produces annual cash ﬂows of
$9,876 a year for three years. What is the proﬁtability index of this project?
A) .92
B) 1.00
C) 1.03
D) 1.09
E) 1.19

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The Answer of A project has been assigned a required annual accounting return of 14% and a required discount rate of 9%. The initial cost of the project is $25,000. The project produces annual cash ﬂows of
$9,876 a year for three years. What is the proﬁtability index of this project?
A) .92
B) 1.00
C) 1.03
D) 1.09
E) 1.19

A Project Has Been Assigned a Required Annual Accounting Return