Calculate the projects profitability index


A firm with a 10 percent cost of capital is considering a project for this year's capital budget. The project's expected after tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$5000 $2100 $2300 $2500 $2400

Calculate the project's profitability index (PI).

Select One: A. 1.4655 B. 1.8600 C. 1.2704 D. 1.6909 E. 0.5345

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Financial Management: Calculate the projects profitability index
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