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Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year: Year
Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year:
| Year | Cash flow |
|---|---|
| 0 | -50 |
| 1 | -90 |
| 2 | 20 |
| 3 | 40 |
| 4 | 80 |
| 5 | 80 |
The company requires a return of 9% from this project.
a. whats the npv?
b. What is the project's profitability index?
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