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Consider the following cash flows: Year Cash Flow 0 $29,300 1 14,400 2 14,500 3 10,900 a. What is the profitability index for the cash
Consider the following cash flows: |
Year | Cash Flow |
0 | $29,300 |
1 | 14,400 |
2 | 14,500 |
3 | 10,900 |
a. | What is the profitability index for the cash flows if the relevant discount rate is 9 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 14 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 21 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
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