Calculate the Profitability Index for the Cash Flows Provided in the Table

question 16

Multiple Choice

Calculate the profitability index for the cash flows provided in the table below.Note: The negative cash flow for year 0 is the initial investment for the project.Assume a required rate of return of 9.00%

• A)0.85
• B)0.90
• C)1.00
• D)1.11

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