Consider the following cash flows:YearCash Flow-$28,60015,10013,80010,20012a. What is the profitability index for the cash flows if the relevant discount rate is 11percent? (Do not round intermediate calculations and round your answer to 3decimal places, e.g., 32.161.)b. What is the profitability index if the discount rate is 16 percent? (Do not roundintermediate 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 roundintermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)Profitability indexа.b. Profitability indexProfitability indexC.

profitability index is given by present value of cash flow to initial investment. Profitability…

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

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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...

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