Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the profitability index of a project that costs $ 8 , 0 0 0 and provides cash flows of $ 2 , 4

What is the profitability index of a project that costs $8,000 and provides cash flows of $2,400 in years 1 and 2 and $4,400 in years 3 and 4? The discount rate is 10%.
Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
PS the answer is not 1.3095
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Energy Trading

Authors: Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli

1st Edition

1119953693, 978-1119953692

More Books

Students also viewed these Finance questions