MC algo 9-21 Calculating Profitability Index   POD has a project with the following cash flows:  Year Cash Flows 0 −$ 275,000 1 145,800 2 163,300 3 128,400  The required return is 8.6 percent. What is the profitability index for this project?   Multiple Choice   1.130   .922   .737   1.356   1.243

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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MC algo 9-21 Calculating Profitability Index

 

POD has a project with the following cash flows:
 

Year Cash Flows
0 −$ 275,000
1 145,800
2 163,300
3 128,400

 
The required return is 8.6 percent. What is the profitability index for this project?

 

Multiple Choice
  •  

    1.130

  •  

    .922

  •  

    .737

  •  

    1.356

  •  

    1.243

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