The profitability index of a certain project is 1.2 with an investment of P 56,600. Cost of capital is 14%. The life of the project is 12 years. The cash income each year is uniform. The PV of an annuity of P 1 for 12 years at 14% is 5.660. How much is the annual cash income? a. P 11,326 b. P 11,330 c. P 12,000 d. P 12,300

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Chapter12: Capital Investment Decisions
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Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...
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The profitability index of a certain project is 1.2 with an investment of P 56,600. Cost of capital is 14%. The life of the project is 12 years. The cash income each year is uniform. The PV of an annuity of P 1 for 12 years at 14% is 5.660. How much is the annual cash income?
a. P 11,326
b. P 11,330
c. P 12,000
d. P 12,300 

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