Calculate the profitability index for a project that has a net present value equal to -$10,000.The project's net investment is $20,000, and the firm has a 40 percent marginal tax rate.
A)-0.5
B)0
C)0.8
D)None of these

Name: Calculate the profitability index for a project that has a net present value equal to -$10,000.The project's net investment is $20,000, and the firm has a 40 percent marginal tax rate. A)-0.5 B)0 C)0.8 D)None of these
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Quizplus · Accepted Answer

PI = $10,000/$20,000 = 0.5

Calculate the Profitability Index for a Project That Has a Net