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7) You are offered an investment with returns of $ 1,279 in year 1, $ 3,206 in year 2, and $ 3,263 in year 3.
7) You are offered an investment with returns of $ 1,279 in year 1, $ 3,206 in year 2, and $ 3,263 in year 3. The investment will cost you $ 7,528 today. If the appropriate Cost of Capital (quoted interest rate) is 11.7 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.
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