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Required : (a) What is the profitability index for the cashflows if the relevant discount rate is 10 percent? (b) What is the profitability index
Required : |
(a) | What is the profitability index for the cashflows if the relevant discount rate is 10 percent? |
(b) | What is the profitability index for the cashflows if the relevant discount rate is 14 percent? |
(c) | What is the profitability index for the cashflows if the relevant discount rate is 22 percent? |
Year | Cash Flow |
0 | $8,400 |
1 | 3,000 |
2 | 5,000 |
3 | 4,000 |
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