Question
Consider a project with the following cash flows: Year Cash Flow 0 8500 1 3400 2 3400 3 3400 4 3400 Assume the appropriate discount
Consider a project with the following cash flows:
| Year | Cash Flow |
| 0 | 8500 |
| 1 | 3400 |
| 2 | 3400 |
| 3 | 3400 |
| 4 | 3400 |
Assume the appropriate discount rate for this project is 12%. The profitability index for this project is closest to:
A.
0.32
B.
0.86
C.
0.21
D.
0.24
Click to select your answer.
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Competing On Analytics The New Science Of Winning
Authors: Thomas H Davenport, Jeanne G Harris, Gary Loveman
1st Edition
1422103323, 9781422103326
