Question
Consider the following cash flows: Year Cash Flow 0 $-29,800 1 13,900 2 15,000 3 11,400 Requirement 1: What is the profitability index for the
Consider the following cash flows:
Year | Cash Flow |
0 | $-29,800 |
1 | 13,900 |
2 | 15,000 |
3 | 11,400 |
Requirement 1: |
What is the profitability index for the above set of cash flows if the relevant discount rate is 9 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 14 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 21 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) |
Profitability index |
|
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