A project requires an investment of $1,500 and has a net present value of $400. If the IRR is 9%, what is the profitability index for the project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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A project requires an investment of $1,500
and has a net present value of $400. If the
IRR is 9%, what is the profitability index for
the project?
Transcribed Image Text:A project requires an investment of $1,500 and has a net present value of $400. If the IRR is 9%, what is the profitability index for the project?
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