Consider the following cash flows: Year Cash Flow 0 −$ 29,000 1 14,700 2 14,200 3 10,600 What is the profitability index for the cash flows if the relevant discount rate is 10 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 15 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 22 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
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Consider the following cash flows:

Year Cash Flow
0 −$ 29,000
1 14,700
2 14,200
3 10,600
  1. What is the profitability index for the cash flows if the relevant discount rate is 10 percent?

    Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.

  2. What is the profitability index if the discount rate is 15 percent?

    Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.

  3. What is the profitability index if the discount rate is 22 percent?

    Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.

 

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