1.

What is the profitability index for an investment with the following cash flows given a 9 percent required return?

Year

Cash Flow

0

$-21,000

1

$7,300

2

$9,500

3

What is the payback period for the following set of cash flows?

Year

Cash Flow

0

$ 2,200

1

1,900

2

1,000

3

2,700

4

2,300

What is the profitability index for an investment with the following cash flows given a 9 percent required return?

Year	Cash Flow
0	$-21,000
1	$7,300
2	$9,500
3	$8,800

$8,800