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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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