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A project has the following cash flows: year cash flows 0 - $ 128, 500 1 51,200 2 63,800 3 51,600 4 28,100 The required
A project has the following cash flows:
year | cash flows |
0 | - $ 128, 500 |
1 | 51,200 |
2 | 63,800 |
3 | 51,600 |
4 | 28,100 |
The required return is 9 percent. So what is the profitability index for this project?
a. 1.001
b. .801
c. 1.248
d. 1.144
e. 1.040
I guessed C. 1.248 but i believe this is wrong.
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