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0 1 2 3 InvestmentB: $1 million $575,000 $450,000 $350,000 The timeline of an investment is shown above. If the cost of capital is 4%,
0 1 2 3
InvestmentB: $1 million $575,000 $450,000 $350,000
The timeline of an investment is shown above. If the cost of capital is 4%, what is the profitability index of thisinvestment?
A.
1.12
B.
0.7
C.
0.28
D.
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