Find the profitability index pi for the following series of


1. Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 12.28 percent.The initial outlay is $490,800.

Year 1: $125,500

Year 2: $169,800

Year 3: $184,500

Year 4: $173,500

Year 5: $153,100

2. Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 14.70 percent. The initial outlay is $412,602.

Year 1: $163,517

Year 2: $187,913

Year 3: $157,760

Year 4: $193,145

Year 5: $170,497

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Financial Management: Find the profitability index pi for the following series of
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