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Consider the following cash flows: Year Cash Flow 0 $28,400 1 15,300 2 13,600 3 10,000 a. What is the profitability index for the cash
Consider the following cash flows: |
Year | Cash Flow |
0 | $28,400 |
1 | 15,300 |
2 | 13,600 |
3 | 10,000 |
a. | What is the profitability index for the cash flows if the relevant discount rate is 8 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
b. | What is the profitability index if the discount rate is 13 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
c. | What is the profitability index if the discount rate is 22 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
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