What is the profitability index of a project that costs $8,000 and provides cash flows of $2,900 in years 1 and 2 and $4,900 in years 3 and 4? The discount rate is 8%. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Profitability index

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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What is the profitability index of a project that costs $8,000 and provides cash flows of $2,900 in years 1 and 2
and $4,900 in years 3 and 4? The discount rate is 8%.
Note: Do not round intermediate calculations. Round your answer to 4 decimal places.
Profitability index
Transcribed Image Text:What is the profitability index of a project that costs $8,000 and provides cash flows of $2,900 in years 1 and 2 and $4,900 in years 3 and 4? The discount rate is 8%. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Profitability index
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