Question

A project has the following cash flows. Assume an interest rate of 14%. What is the...

A project has the following cash flows. Assume an interest rate of 14%. What is the Profitability Index (PI)?

Year Cash Flow
0 -$884
1 $224
2 $223
3 $418
4 $394

Note: Enter your answer rounded off to two decimal points.

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Answer #1

Computation of Profitability Index :- Present value Cash Present of $ 1 Year flows $ Value $ @14% (884) 1.000 (884.00) 224 0.

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