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What is the profitability index for project

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Suppose a company has proposed a new 4-year project. The project has an initial outlay of $21,000 and has expected cash flows of $8,000 in year 1, $8,000 in year 2, $11,000 in year 3, and $12,000 in year 4. The required rate of return is 12% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)

Reference no: EM132700892

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