Answer to Question #217856 in Finance for Beauty Magadlela

Question #217856

If the NPV (Net Present Value) of a shop is R195 000 and the profitability index is 1,24375, the initial investment in the shop is


[1] R86 908. [2] R800 000. [3] R195 000. [4] R156 784. [5] none of the above


1
Expert's answer
2021-07-20T16:05:35-0400

initial investment) initial investment

so option [2] R800 000 appears to be the correct answer as it is close to the calculated value.


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