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Assume there is a project where the firm will initially invest $185,000 to receive $54,000 at Year 1, $45,000 at Year 2, $34,000 at Year
Assume there is a project where the firm will initially invest $185,000 to receive $54,000 at Year 1, $45,000 at Year 2, $34,000 at Year 3, $55,000 at Year 4, $40,500 at Year 5, and $50,500 at Year 6. If the interest/discount rate is 10.25%, what is the profitability index?
A.) 1.11
B.) 1.07
C.) 1.51
D.) 1.09
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