What is the profitability index


Problem:

A project has the following cash flows, for years 0 through 3 respectively: -24,139, 12,992, 14,341, 8,633.

Requirement:

Question 1: If the required return is 9.1 percent, what is the profitability index?

Note: Provide support for rationale.

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Accounting Basics: What is the profitability index
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