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A proposed project costs $ 3 0 0 and has cash flows of $ 8 0 , $ 2 0 0 , $ 7 5

A proposed project costs $300 and has cash flows of $80, $200, $75, and $90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. How much will this project return in todays dollars for every $1 invested? In other words, what is the profitability index?
A proposed project costs $300 and has cash flows of $80, $200, $75, and $90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. How much will this project return in todays dollars for every $1 invested? In other words, what is the profitability index?
$.99
$1.05
$.97
$1.03
$1.01

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