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# Problem 8 13 Calculating Profitability Index LO 6 Consider the following cash flows Year Cash Flow

Problem 8-13 Calculating Profitability Index [LO 6]

 Consider the following cash flows:
 Year Cash Flow 0 \$-29,800 1 13,900 2 15,000 3 11,400
 Requirement 1: What is the profitability index for the above set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).)
 Profitability index __________________
 Requirement 2: What is the profitability index if the discount rate is 14 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).)
 Profitability index ______________
 Requirement 3: What is the profitability index if the discount rate is 21 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).)
 Profitability index ________________ Subscribe To Get Solution