Question
POD has a project with the following cash flows: Year Cash Flows 0 $259,000 1 146,600 2 164,100 3 129,200 The required return is 9.4
POD has a project with the following cash flows:
| Year | Cash Flows | |
| 0 | $259,000 |
|
| 1 | 146,600 |
|
| 2 | 164,100 |
|
| 3 | 129,200 |
|
The required return is 9.4 percent. What is the profitability index for this project?
- .700
- .875
- 1.428
- 1.190
- 1.309
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
