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Company A has identified the following capital investment project: Time 0 Time 1 Time 2 Cash flows (280,000) 210,000 230,000 The company's cost of capital
Company A has identified the following capital investment project:
Time 0 | Time 1 | Time 2 | |
Cash flows | (280,000) | 210,000 | 230,000 |
The company's cost of capital is 10%.
Which of the following represents the profitability index for this project?
0.33 or 1.33 | ||
0.36 or 1.36 | ||
0.8 or 1.8 | ||
0.57 or 1.57 |
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