Question
The projects cost is $120,000 and the expected cash flows are: Year 1: $60,000 Year 2: $0 Year 3: $100,000 Year 4: $0 Year 5:
The projects cost is $120,000 and the expected cash flows are:
Year 1: $60,000
Year 2: $0
Year 3: $100,000
Year 4: $0
Year 5: $60,000
The discount rate is 18%. Calculate the profitability index (PI).
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
