question archive Gold Mining, Inc
Gold Mining, Inc
Subject:BusinessPrice: Bought3
Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining’s cost of capital is 5.21 percent. What is the PI of a project if the initial costs are $1,789,952 and the project life is estimated as 7 years? The project will produce the same after-tax cash inflows if $614,382 per year at the end of the year.
Round the answer to two decimal places.
