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We-Know-Widgets, Inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $100 in year 1, $4,000 in year
We-Know-Widgets, Inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $100 in year 1, $4,000 in year 2 and $15000 in year 3. The cost of capital is 10%. What is the profitability index of the project? A) 1.04 B) 1.55 C) 1.78 D) 1.97
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