Question
Calculating Profitability Index Use the following set of cash flows to calculate the Profitability Index at different required rates of return: Year Cash flow 0
Calculating Profitability Index
Use the following set of cash flows to calculate the Profitability Index at different required rates of return:
| Year | Cash flow |
| 0 | -6500 |
| 1 | 4000 |
| 2 | 2000 |
| 3 | 1500 |
The PI is __________if the required rate of return is 10%.
The PI is __________if the required rate of return is 15%.
The PI is __________if the required rate of return is 22%.
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Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
2nd International Edition
0071287728, 9780071287722
