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Homework answers / question archive / Dizzyland Enterprises has been presented with an investment opportunity which will yield end -of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10
Dizzyland Enterprises has been presented with an investment opportunity which will yield end -of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10%. What is the profitability index for this investment?
0.87 |
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1.85 |
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0.21 |
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1.34 |
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