What is the profitability index of a project that costs $8,000 and provides cash flows of $2,600 in years 1 and 2 and $4,600 in years 3 and 4? The discount rate is 8%. Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
What is the profitability index of a project that costs $8,000 and provides cash flows of $2,600 in years 1 and 2 and $4,600 in years 3 and 4? The discount rate is 8%. Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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am. 114.
Transcribed Image Text:What is the profitability index of a project that costs $8,000 and provides cash flows of $2,600 in years 1 and 2 and $4,600 in years 3 and 4? The discount rate is 8%. Note:
Do not round intermediate calculations. Round your answer to 4 decimal places.
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