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Question

Finance

Year Cash Flow
0 $9,400
1 4,000
2 5,700
3 3,300

a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent?
  • 1.228
  • 1.252
  • 1.133
  • 1.157
  • 1.193

b. What is the profitability index for the cash flows if the relevant discount rate is 19 percent?
  • 0.994
  • 1.024
  • 1.044
  • 0.944
  • 0.964

c. What is the profitability index for the cash flows if the relevant discount rate is 24 percent?
  • 0.922
  • 0.949
  • 0.968
  • 0.876
  • 0.894

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