Problem 8 13 Calculating Profitability Index LO 6 Consider the following cash flows Year Cash Flow
Problem 813 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 ________________ 


Aug 22 2020 View more View Less
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