Bedford Inc. uses a 15% opportunity cost of capital appraise all its projects. Management is currently looking at a project which requires a capital outlay of $3,000. The cash inflows are estimated to be $500 in year one, while year two inflows are thrice as much as year one's and year three inflows are ten folds of year one. Calculate the NPV of the project. Answer: A project has the following cash flows 340, 120,153,166, and 130 which represents years 0 thru 4 . What is the profitability index of project given a required rate of return 16%