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
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
icon
Related questions
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

AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage