Company uses the profitability index pi when evaluating


Company uses the profitability index (PI) when evaluating projects. The cost of capital is 14.52 percent. What is the PI of a project if the initial costs are $2351733 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $523107 per year at the end of the year.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Company uses the profitability index pi when evaluating
Reference No:- TGS01367995

Expected delivery within 24 Hours