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A project has an initial cost of $37,875, expected net cash inflows of $12,000 per year...

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Finance

A project has an initial cost of $37,875, expected net cashinflows of $12,000 per year for 8 years, and a cost of capital of12%. What is the project's PI? Do not round your intermediatecalculations. Round your answer to two decimal places.

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3.6 Ratings (286 Votes)
Profitability index is calculated using the below formula Profitability Index NPV Initial investment Initial investment Net present value is    See Answer
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