8. A project has an initial cost of $45,375, expected net cash inflows of $15,000 per...

8. A project has an initial cost of $45,375, expected net cash inflows of $15,000 per year for 11 years, and a cost of capital of 10%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

Expert Solution

Solution :

The Project's Profitability Index = 2.15 ( when rounded off to two decimal places )

Please find the attached screenshot of the excel sheet containing the detailed calculation fro the above solution.

jeff jeffy answered 11 months ago

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