Question
Consider a project that requires an investment of $21,000 today and generates after-tax cash flows as follows. C01: $10,000 C02: $12,000 C03: $15,000 C04: -$5,000
Consider a project that requires an investment of $21,000 today and generates after-tax cash flows as follows.
C01: $10,000
C02: $12,000
C03: $15,000
C04: -$5,000
If the appropriate discount rate is 15 percent, what is the Profitability Index (PI)?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
