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1 Consider the following cash flows: 05 points Year 0 1 2 3 Cash Flow -$29.400 14.300 14,600 11.000 03:32:59 eBook References a. What is the profitability Index for the cash flows if the relevant discount rate is 8 percent? (Do not round Intermediate calculations and round your answer to 3 decimal places, e.g. 32.161.) b. What is the profitability Index if the discount rate is 13 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g. 32.161.) c. What is the profitability Index if the discount rate is 20 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g. 32.161.) a. Profitability index b. Profitability index c. Profitability index 2 A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. 05 points 8 03:32:39 a. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) eBook Hint References a NPV b NPV C Discount rate

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