Question
You are offered an investment with returns of $ 2,963 in year 1, $ 4,558 in year 2, and $ 5,620 in year 3. The
You are offered an investment with returns of $ 2,963 in year 1, $ 4,558 in year 2, and $ 5,620 in year 3. The investment will cost you $ 7,611 today. If the appropriate Cost of Capital (quoted interest rate) is 12.5 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.You are offered an investment with returns of $ 2,963 in year 1, $ 4,558 in year 2, and $ 5,620 in year 3. The investment will cost you $ 7,611 today. If the appropriate Cost of Capital (quoted interest rate) is 12.5 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.
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