Question

Asked Nov 20, 2019

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Compute the PI statistic for Project Q if the appropriate cost of capital is 12 percent. **(Do not round intermediate calculations and round your final answer to 2 decimal places.)**

Project Q | |||||

Time: | 0 | 1 | 2 | 3 | 4 |

Cash flow: | −$11,900 | $3,800 | $4,630 | $1,970 | $2,600 |

PI: _____.__

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Step 1

**Calculation of Profitability Index (PI):**

The profitability index (PI) is **0.85**.

**Excel Spreadsheet:**

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