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Year Cash Flow 0 $7,800 1 3,600 2 3,500 3 4,000 Required : (a) What is the profitability index for the cashflows if the relevant

Year Cash Flow
0 $7,800
1 3,600
2 3,500
3 4,000

Required :
(a) What is the profitability index for the cashflows if the relevant discount rate is 8 percent?
(Click to select) $1.158 $1.219 $1.28 $1.256 $1.183

(b) What is the profitability index for the cashflows if the relevant discount rate is 14 percent?
(Click to select) $1.129 $1.063 $1.096 $1.041 $1.151

(c) What is the profitability index for the cashflows if the relevant discount rate is 25 percent?
(Click to select) 0.919 0.965 0.891 0.947 0.873

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