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Year Cash Flow 0 $7,000 1 3,700 2 2,700 3 3,200 a. What is the profitability index for the cash flows if the relevant discount

Year Cash Flow

0 $7,000

1 3,700

2 2,700

3 3,200

a. What is the profitability index for the cash flows if the relevant discount rate is 7 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 26 percent?

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