What is the Profitability index (PI) of a project that has an initial cash outflow of $317,000

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Question:

What is the Profitability index (PI) of a project that has an initial cash outflow of $317,000 and the following cash inflows? Assume the required return is 12 percent.

Year	Cash inflow
1	$27,700
2	$56,000
3	$55,000
4	$399,000

Group of answer choices

1.04

0.88

1.22

1.14

0.93

Related Book For answer-question

Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

Posted Date: Jul 12, 2024 10:07 AM

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What is the Profitability index (PI) of a project that has an initial cash outflow of $317,000

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Advanced Accounting

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