What is the profitability index of the company

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Problem 1: If a company has a project which has cost of $30 million, and is expected to generated cash flow in the future of $55 million present value. What is the Profitability Index?
a. 1.23
b. 2.83
c. 1.83

Problem 2: What could it mean if the computed WACC is higher than the other project?
a. It's riskier
b. It shouldn't matter
c. Its's less risky

Problem3 : It is the period when a project has recovered everything that was put into cost.

a. Backing Period
b. Maturity Period
c. Payback Period

Reference no: EM132931048

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