Question
Consider the following cash flows: Year Cash Flow 0 $-28,400 1 15,300 2 13,600 3 10,000 Requirement 1: What is the profitability index for the
Consider the following cash flows: |
Year | Cash Flow |
0 | $-28,400 |
1 | 15,300 |
2 | 13,600 |
3 | 10,000 |
Requirement 1: |
What is the profitability index for the above set of cash flows if the relevant discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) |
Profitability index |
|
Requirement 2: |
What is the profitability index if the discount rate is 13 percent? (Do not round intermediate calculations.Round your answer to 3 decimal places (e.g., 32.161).) |
Profitability index |
|
Requirement 3: |
What is the profitability index if the discount rate is 22 percent? (Do not round intermediate calculations.Round your answer to 3 decimal places (e.g., 32.161).) |
Profitability index |
|
References
eBook & Resources
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started