Year Cash Flow
0 $9,700
1 3,700
2 2,400
3 4,200
Required :
(a) What is the profitability index for the cashflows if the relevant discount rate is 7 percent?
(b) What is the profitability index for the cashflows if the relevant discount rate is 17 percent?
(c) What is the profitability index for the cashflows if the relevant discount rate is 25 percent?