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Compute the profitability index of the following project assuming a 12% cost of capital. Year 0 1 2 3 Cash flow -$4,400 $2,100 $2,500 $3,000

Compute the profitability index of the following project assuming a 12% cost of capital.

Year

0

1

2

3

Cash flow

-$4,400

$2,100

$2,500

$3,000

Question 4 options:
1) 1.24
2) 1.28
3) 1.32
4)

1.36

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