Find the profitability index if the discount rate is given


A firm is reviewing a project that has an initial cost of $71,000. The project will produce annual cash inflows, starting with year 1, of $8,000, $13,400, $18,600, $33,100 and finally in year five, $37,900. What is the profitability index if the discount rate is 11 percent?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find the profitability index if the discount rate is given
Reference No:- TGS0551624

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)