Question
Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 12.48 percent. The initial outlay
Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 12.48 percent. The initial outlay is $490,654.
Year 1: $120.380
Year 2: $130,104
Year 3: $164,970
Year 4: $199,415
Year 5: $172,828
Round the answer to two decimal places.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
