Consider the following cash flows: Year Cash Flow 0


Question Description:

25

Consider the following cash flows: Year Cash Flow 0 –$28,000 1 15,700 2 13,200 4 9,600 What is the profitability index for the above set of cash flows if the relevant discount rate is 10 percent? What is the profitability index if the discount rate is 15 percent? What is the profitability index if the discount rate is 22 percent?

Answer

25