What is the profitability index of the investment

Assignment Help Financial Management

Reference no: EM131897381

You are offered an investment with returns of $ 2,955 in year 1, $ 3,072 in year 2, and $ 3,602 in year 3. The investment will cost you $ 7,650 today. If the appropriate Cost of Capital (quoted interest rate) is 12.1 %, 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: EM131897381

Questions Cloud

What event prompted the usa to join the world war i : Name two houses of the British Parliament. What event prompted the United States of America (USA) to join the First World War in 1917?

What is the primary key of project : What is the primary key of PROJECT? Describe two modification anomalies from which PROJECT suffers. In what normal form is PROJECT

How can socialization and mentoring be used : The team has been invited to present at a conference before top executives of Fortune 500 companies. The topic the team is presenting on.

Learning environment in a modern classroom : How does one create a positive learning environment in a modern classroom?

What is the profitability index of the investment : The investment will cost you $ 7,650 today. If appropriate Cost of Capital (quoted interest rate) is 12.1 %, what is the Profitability Index of the investment?

What are some examples of sustainability issues : What are some examples of sustainability issues that we can find in our community?

What price should the stock be trading at today : If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY?

Cultural learning in various subjects : In which senses can social networking sites (SNSs) enhance trans-national/cultural learning in various subjects?

Current financial performance : Do a search for Tesla’s (TSLA) current financial performance.

User Account

All Pages