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))
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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