Using the profitability index when evaluating projects

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Reference no: EM13728590

A company is using the Profitability Index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 9.5%. The initial outlay for the project is $379,000. The project will produce the following after-tax inflows of:

Year 1: $179,424

Year 2: $174,170

Year 3: $197,599

Year 4: $187,281

Round the answers to two decimal points.

Reference no: EM13728590

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Using the profitability index- after-tax inflows : A company is using the Profitability Index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 9.5%. The initial outlay for the project is $379,000. The project will produce the ..

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