What is the profitability index of the investment


Question 1: You are offered an investment with returns of $2,237 in year 1, $3,748 in year 2, and $3,493 in year 3. The investment will cost you $8,746 today. If the appropriate Cost of Capital (quoted interest rate) is 9.8%, what is the Profitability Index of the investment?

Question 2: You are offered an investment with returns of $1,595 in year 1, $4,389 in year 2, and $3,585 in year 3. The investment will cost you $6,264 today. If the appropriate Cost of Capital (quoted interest rate) is 6.9%, what is the Net Present Value of the investment?

Question 3: You are offered an investment with returns of $2,834 in year 1, $4,508 in year 2, and $5,384 in year 3. The investment will cost you $5,298 today. If the appropriate Cost of Capital (quoted interest rate) is 9.2%, what is the Net present Value of the investment?

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Finance Basics: What is the profitability index of the investment
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