Question
Year Cash Flow 0 $7,800 1 3,000 2 5,900 3 2,300 a. What is the profitability index for the cash flows if the relevant discount
| Year | Cash Flow |
| 0 | $7,800 |
| 1 | 3,000 |
| 2 | 5,900 |
| 3 | 2,300 |
| 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 16 percent c. What is the profitability index for the cash flows if the relevant discount rate is 22 percent? |
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
7th Edition
007331465X, 978-0073314655
