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A project requires an initial outlay of $200,000 and will generate the following cash flows over the next 6 years: Year 1 $20,000, Year 2
A project requires an initial outlay of $200,000 and will generate the following cash flows over the next 6 years: Year 1 $20,000, Year 2 $85,000, Year 3 $50,000, Year 4 $50,000, Year 5 $90,000, Year 6 $30,000 The required return for this project is 12%. Find the profitability index.
A)1.0963
B).0963
C)1.082
D).082
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