QUESTION 15\ A project will cost

$48,000

today and is forecasted to earn an inflow of

$3,000

during the first year, followed by 8 annual cash flows of

$12,000

thereafter. Cost of capital is

7.1%

. What is this project's Profitability Index?\ a. 1.32\ b. 1.45\ c. 0.91\ d. 1.03\ e. 1.26

A project will cost $48,000 today and is forecasted to earn an inflow of $3,000 during the first year, followed by 8 annual cash flows of $12,000 thereafter. Cost of capital is 7.1%. What is this project's Profitability Index? a. 1.32 b. 1.45 c. 0.91 d. 1.03 e. 1.26