| | Problem 8-13 Calculating Profitability Index [LO 6] | Consider the following cash flows: | | Year | Cash Flow | | 0 | $-29,800 | | 1 | 13,900 | | 2 | 15,000 | | 3 | 11,400 | | | | Requirement 1: | | What is the profitability index for the above set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) | | Profitability index __________________ | | | Requirement 2: | | What is the profitability index if the discount rate is 14 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) | | Profitability index ______________ | | | Requirement 3: | | What is the profitability index if the discount rate is 21 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) | | Profitability index ________________ | | |
