A firm with a 10 percent cost of capital is considering a pr…
A firm with a 10 percent cost of capital is considering a project for this year’s capital budget. The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$9,000 $3,200 $4,100 $4,400 $3,700 Calculate the project’s profitability index (PI).