Compute the profitability index for project

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The cash flows for Project Z are shown below with the appropriate cost of capital at 11.5 percent. Project Z TIME 0 1 2 3 4 5 Cash Flow –$ 930 $ 420 $ 500 $ 540 $ 240 $ 190 Compute the Profitability index for Project Z. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Profitability index % Using the profitability index, should the project be accepted or rejected?

Reference no: EM131613335

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