POD has a project with the following cash flows: Year Cash Flows 0 −$ 243,000 1 147,400 2 164,900 3 130,000 The required return is 8.7 percent. What is the profitability index for this project? Multiple Choice .646 1.420 .807 1.291 1.549

POD has a project with the following cash flows: Year Cash Flows 0 −$ 243,000 1 147,400 2 164,900 3 130,000 The required return is 8.7 percent. What is the profitability index for this project? Multiple Choice .646 1.420 .807 1.291 1.549

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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Question

POD has a project with the following cash flows:

Year	Cash Flows
0	−$ 243,000
1	147,400
2	164,900
3	130,000

The required return is 8.7 percent. What is the profitability index for this project?

Multiple Choice

.646
1.420
.807
1.291
1.549

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