Homework Answers
Answer:$96,287
Project profitability index = Net present value of the project ÷ Investment required
Project profitability index = (Present value of the future cash inflows − Investment required) / Investment required
0.319 = (Present value of the future cash inflows – $73,000) ÷ $73,000
(Present value of the future cash inflows – $73,000) = 0.319 × $73,000
Present value of the future cash inflows = 0.319 × $73,000 + $73,000)
$23,287 + $73,000) = $96,287
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