What Is the Profitability Index for an Investment with the Following

question 51

Multiple Choice

What is the profitability index for an investment with the following cash flows given a 9% required return?
$\begin{array}{|l|l|}\hline \text { Year } & \text { Cash Flow } \\\hline 0 & -£ 21,500 \\\hline 1 & £ 7,400 \\\hline 2 & £ 9,800 \\\hline 3 & £ 8,900 \\\hline\end{array}$

• A).96
• B).98
• C)1.00
• D)1.02
• E)1.04

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