What is the profitability index of investment

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Reference no: EM131896706

You are offered an investment with returns of $ 1,593 in year 1, $ 3,519 in year 2, and $ 5,584 in year 3. The investment will cost you $ 8,378 today. If the appropriate Cost of Capital (quoted interest rate) is 6.4 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.

Reference no: EM131896706

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