Question
You are offered an investment with returns of $ 2,826 in year 1, $ 3,849 in year 2, and $ 4,052 in year 3. The
You are offered an investment with returns of $ 2,826 in year 1, $ 3,849 in year 2, and $ 4,052 in year 3. The investment will cost you $ 6,061 today. If the appropriate Cost of Capital (quoted interest rate) is 12.1 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01.
Your Answer:
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
