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What is the Profitability Index (PI) of the following project if the discount rate is 12.25%? Date 0 1 2 3 4 5 Cash Flow
What is the Profitability Index (PI) of the following project if the discount rate is 12.25%?
| Date | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | -$100,000 | $37,500 | $37,500 | $37,500 | $37,500 | $37,500 |
a) 1.39 b) 0.34 c) 0.87 d) 0.88
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Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
