Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 14.12 percent. The initial outlay is $418,044. Year 1: $164,390 Year 2: $152,563 Year 3: $195,331 Year 4: $199,028 Year 5: $175,965
Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 14.12 percent. The initial outlay is $418,044. Year 1: $164,390 Year 2: $152,563 Year 3: $195,331 Year 4: $199,028 Year 5: $175,965
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
Problem 1PS
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Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 14.12 percent. The initial outlay is $418,044.
Year 1: $164,390
Year 2: $152,563
Year 3: $195,331
Year 4: $199,028
Year 5: $175,965
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