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Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company

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Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $40000 and is expected to generate cash inflows of $21250 at the end of each year for three years. The profitability index for this project is O 1.34 O 1.32 O 1.00 O 0.75

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