Question

Year Cash Flows 0 -17189 1 11331 2 9978 3 6764 What is the profitability index...

Year Cash Flows
0 -17189
1 11331
2 9978
3 6764

What is the profitability index for the set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))

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Answer #1

Solution :

The profitability index for the set of cash flows if the relevant discount rate is 9 percent is = 1.397

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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