Question
(0) Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year:
(0)
Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year:
| Year | Cash flow |
|---|---|
| 0 | -50 |
| 1 | -90 |
| 2 | 20 |
| 3 | 40 |
| 4 | 80 |
| 5 | 80 |
The company requires a return of 9% from this project.
a. whats the projects profitability index? (answer is not 1.26 or -1.26)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 9780138596873
