A project has the following cash flows: year cash flows 0 - $ 128, 500 1...

Question

Question

A project has the following cash flows:

The required return is 9 percent. So what is the profitability index for this project?

a. 1.001

b. .801

c. 1.248

d. 1.144

e. 1.040

I guessed C. 1.248 but i believe this is wrong.

Answer 1

Answer #1

PI = PV of Cash Inflows / PV of Cash Outflows

Answer 2

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