Question
What is the profitability index of the proposed project if the discount rate is 6%? Year 0 CF = -$20,000 Year 1 CF = $3,000
What is the profitability index of the proposed project if the discount rate is 6%?
Year 0 CF = -$20,000
Year 1 CF = $3,000
Year 2 CF = $4,000
Year 3 CF = $5,000
Year 4 CF = $6,000
Year 5 CF = $7,000.
Options:
A) 1.63
B) 2.03
C) 1.03
D) 0.03
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
