POD has a project with the following cash flows: Year Cash Flows 0 −$263,000 1 146,400...

POD has a project with the following cash flows: Year Cash Flows 0 −$263,000 1 146,400 2 163,900 3 129,000 The required return is 9.2 percent. What is the profitability index for this project?

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year	CF	PVIF @ 9.2%	present value
0	-263000	1.0000	(263,000)
1	146400	0.9158	134,066
2	163900	0.8386	137,446
3	129000	0.7679	99,065
			107,578


Profitability index = (263000+107578)/263000
			1.41
therefore answer =			1.41

jeff jeffy answered 7 months ago

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