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What is the profitability index for an investment with the following cash flows given a 8...

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Finance

What is the profitability index for an investment with thefollowing cash flows given a 8 percent required return?
      

Year        Cash Flow
0$-20,500  
1$7,100  
2$9,700  
3$8,500  

1.06

1.07

1.04

1.00

1.01

Answer & Explanation Solved by verified expert
3.7 Ratings (516 Votes)
Profitability Index NPV Initial investment InitialinvestmentNet present value is calculated using a financial calculator byinputting the    See Answer
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