Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A project has the following cash flows: Year Cash Flows 0 $130,000 1 60,200 2 63,800 3 51,600 4 28,100 The required return is 8.1

A project has the following cash flows:

Year Cash Flows
0 $130,000
1 60,200
2 63,800
3 51,600
4 28,100

The required return is 8.1 percent. What is the profitability index for this project?

  • A.946

  • b. 1.101

  • c. 1.321

  • D. 1.211

  • E..757

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions