k #8 (Chapter 9b), Round 2 Problem 9-15 Calculating Profitability Index [LO7] Year 0 1 2 3 Cash Flow -$17,500 9,800 8,700 5,200 Saved a. What is the profitability index for the set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 15 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 22 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Profitability index b. Profitability index c. Profitability index

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k #8 (Chapter 9b), Round 2
Problem 9-15 Calculating Profitability Index [LO7]
Year
0
1
2
3
Cash Flow
-$17,500
9,800
8,700
5,200
Saved
a. What is the profitability index for the set of cash flows if the relevant discount rate is 10
percent? (Do not round intermediate calculations and round your answer to 3
decimal places, e.g., 32.161.)
b. What is the profitability index for the set of cash flows if the relevant discount rate is 15
percent? (Do not round intermediate calculations and round your answer to 3
decimal places, e.g., 32.161.)
c. What is the profitability index for the set of cash flows if the relevant discount rate is
22 percent? (Do not round intermediate calculations and round your answer to 3
decimal places, e.g., 32.161.)
a. Profitability index
b. Profitability index
c. Profitability index
Transcribed Image Text:k #8 (Chapter 9b), Round 2 Problem 9-15 Calculating Profitability Index [LO7] Year 0 1 2 3 Cash Flow -$17,500 9,800 8,700 5,200 Saved a. What is the profitability index for the set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 15 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 22 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Profitability index b. Profitability index c. Profitability index
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