What is profitability index if discount rate is 11 percent

Reference no: EM13267026

A firm is reviewing a project that has an initial cost of $71,000. The project will produce annual cash inflows, starting with year 1, of $8,000, $13,400, $18,600, $33,100, and finally in year 5, $37,900. What is the profitability index if the discount rate is 11 percent?

0.92

0.98

1.02

1.07

1.12

Reference no: EM13267026

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