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Dizzyland Enterprises has been presented with an investment opportunity which will yield end -of-year cash flows of $30,000 per year in Years 1 through 4,
Dizzyland Enterprises has been presented with an investment opportunity which will yield end -of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10%. What is the profitability index for this investment?
0.87 | ||
1.85 | ||
0.21 | ||
1.34 |
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