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Profitability Index for the Cash Flows Assignment | Homework For You

Year Cash Flow
0 −$7,100
1 5,500
2 3,500
3 3,600

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a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent?

 

b. What is the profitability index for the cash flows if the relevant discount rate is 15 percent?

 

c. What is the profitability index for the cash flows if the relevant discount rate is 26 percent?

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