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Consider the following: Initial outlay: ? Required rate of return: 10% Profitability index: 0.96 Annual cash in-flows: Year Cash in-flows 1 $0 2 $11,500 3

Consider the following:

Initial outlay: ?

Required rate of return: 10%

Profitability index: 0.96

Annual cash in-flows:

Year Cash in-flows
1 $0
2 $11,500
3 $0
4 $11,500

Calculate initial investment and NPV. (Please show steps and calculations).)

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