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IPSA, PLS, SSHP Memorial Healthcare TOMORROW Lunch with leader Hello Pharmacist Students, On behalf of IPSA, PLS, SSHP, and C

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Answer #1

Profitability Index = (NPV + initial investment) / initial investment.

NPV is calculated using NPV function in Excel.

PI = 1.3273.

B7 fx =NPV(13.25%,B3:36)+B2 D E F. C A 1 Year B Cash Flow ($1,895) $975 $650 $850 $925 $620.25 7 NPV

fx = (B7+1895)/1895 D E C B8 - - A B 1 Year Cash Flow ($1,895) 1 $975 $650 $850 $925 7 NPV $620.25 8 PI 1.3273! AwN

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