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An investment project has the following cash flows: Year Cash Flow 0 -$100 1 $20 2 $50 3 $70 What is the projects Profitability Index
An investment project has the following cash flows:
Year | Cash Flow |
0 | -$100 |
1 | $20 |
2 | $50 |
3 | $70 |
What is the projects Profitability Index (PI)? Assume that the firms required rate of return on projects in this risk class is 12%.
1.4 |
8% |
1.08 |
1 |
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