Zachary Adams has an opportunity to invest in a project that will yield four annual payments of $12,000 with no salvage. The first payment will be received in exactly one year. On low-risk projects of this type, Adams requires a return of 6 percent. Based on this requirement, the project generates a profitability index of 1.03953.
Present value tables or a financial calculator are required.

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The Answer of Zachary Adams has an opportunity to invest in a project that will yield four annual payments of $12,000 with no salvage. The first payment will be received in exactly one year. On low-risk projects of this type, Adams requires a return of 6 percent. Based on this requirement, the project generates a profitability index of 1.03953.
Present value tables or a financial calculator are required.

Zachary Adams Has an Opportunity to Invest in a Project