Homework answers / question archive / Consider the following cash flows:   Year Cash Flow 0 −$29,700      1 14,000      2 14,900      3 11,300          a

Consider the following cash flows:   Year Cash Flow 0 −$29,700      1 14,000      2 14,900      3 11,300          a

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Consider the following cash flows:  

Year Cash Flow

0 −$29,700     

1 14,000     

2 14,900     

3 11,300         

a. What is the profitability index for the cash flows if the relevant discount rate is 12 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

b. What is the profitability index if the discount rate is 17 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c.What is the profitability index if the discount rate is 24 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)