Assume the appropriate discount rate for this project is 14%. The profitability index for this project is closest to ________

Consider a project with the following cash flows:

Year Cash Flow
0 -8000
1 3200
2 3200
3 3200
4 3200

A) 0.17
B) 0.25
C) 0.66
D) 0.18


Answer: A

Business

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