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Year 0 Cash Flow $7,400 Year 1 Cash Flow $2,700 Year 2 Cash Flow $5,400 Year 3 Cash Flow $5,000 a. What is the profitability

Year 0 Cash Flow $7,400

Year 1 Cash Flow $2,700

Year 2 Cash Flow $5,400

Year 3 Cash Flow $5,000

a. What is the profitability index for the cash flows if the relevant discount rate is 10 percent?

b. What is the profitability index for the cash flows if the relevant discount rate is 17 percent?

c. What is the profitability index for the cash flows if the relevant discount rate is 22 percent?

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