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A new product has startup costs of $338,200 and projected cash flows of $102,000, $187,500, and $245,000 for Years 1 to 3, respectively. What is
A new product has startup costs of $338,200 and projected cash flows of $102,000, $187,500, and $245,000 for Years 1 to 3, respectively. What is the profitability index given a 9 percent required return?
a. .71
b. .77
c. 1.16
d. 1.30
e. 1.41
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