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You are analyzing a project with the following cash flows: Year 0: -350,000 Year 1: + 120,000 Year 2: + 85,000 Year 3: +96,000 Year

  1. You are analyzing a project with the following cash flows:

Year 0: -350,000

Year 1: + 120,000

Year 2: + 85,000

Year 3: +96,000

Year 4: +270,000

What is the Profitability Index for this Project?

Multiple Choice

  • The Project has a P.I. of 1.45

  • The Project has a P.I. of 2.33

  • The Project has a P.I. of 3.52

  • The Project has a P.I. of 1.10

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1. You are analyzing a project with the following cash flows: 52 Year O: -350.000 Year 1: + 120,000 Year 2: +85,000 Year 3: +96,000 Year 4: +270,000 What is the NPV for this project, using a 15% discount rate? Multiple Choice The Project has an NPV of $70.617

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