Hermann Corporation is considering an investment of h375 million with expected aftertax cash inflows of h115 million per year for seven years and an additional after-tax salvage value of h50 million in year seven. The required rate of return is 10%. What is the investment’s PI?
A. 1.19.
B. 1.33.
C. 1.56.
Answer: B. 1.33.
Business
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