Question
Consider the following cash flows: Year Cash Flow 0 $-28,900 1 14,800 2 14,100 3 10,500 Requirement 1: What is the profitability index for the
Consider the following cash flows: Year Cash Flow 0 $-28,900 1 14,800 2 14,100 3 10,500
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 20 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Profitability index_____________
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