1. What monthly rate of interest will yield an annual effective rate of interest of 14%?
1.17%
1.10%
1.08%
1.14%
2. The Fitness Center is considering including a treadmill in this? year's capital budget. The cash outlay for the treadmill is $ 1 comma 590$1,590. The? firm's cost of capital is 7.4 %7.4%. ?After-tax cash? flows, including? depreciation, are as shown in the table below. Calculate the profitability index? (PI) for this project.
End of Year Cash Flow
1 $ 520
2 $520
3 $520
4 $520
5 $520
The present value of the cash inflows is ______.
?(Round to the nearest? cent.)
The profitability index is _______.
?(Round to two decimal? places.)