Consider the following cash flows: Year Cash Flow -$28,600 15,100 13,800 10,200 1 2 3 a. What is the profitability index for the cash flows if the relevant d percent? (Do not round intermediate calculations and round yo decimal places, e.g., 32.161.) b. What is the profitability index if the discount rate is 16 percent? (Do no intermediate calculations and round your answer to 3 decimal place c. What is the profitability index if the discount rate is 23 percent? (Do n intermediate calculations and round your answer to 3 decimal place a. Profitability index b. Profitability index c. Profitability index

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Consider the following cash flows:
Year
Cash Flow
-$28,600
15,100
13,800
10,200
1
2
a. What is the profitability index for the cash flows if the relevant discount rate is 11
percent? (Do not round intermediate calculations and round your answer to 3
decimal places, e.g., 32.161.)
b. What is the profitability index if the discount rate is 16 percent? (Do not round
intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
c. What is the profitability index if the discount rate is 23 percent? (Do not round
intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Profitability index
а.
b. Profitability index
Profitability index
C.
Transcribed Image Text:Consider the following cash flows: Year Cash Flow -$28,600 15,100 13,800 10,200 1 2 a. What is the profitability index for the cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index if the discount rate is 16 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index if the discount rate is 23 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) Profitability index а. b. Profitability index Profitability index C.
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