The profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent is: 15%.

<h3>Profitability index</h3>

First step is to find the Net present value (NPV) of the given cash flow using discount rate PVF 16% and PV of cash flow which in turn will give us net present value of 49.7.

Second step is to calculate the profitability index

Profitability index = 49.7/340

Profitability index = .15×100

Profitability index=15%

Therefore the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120, 130, 153, and 166, respectively, and a discount rate of 16 percent is: 15%.

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10 months ago

When a die is rolled what is the probability of rolling a 2 or a 5?

Travka [436]

$\dfrac{1}{6}+\dfrac{1}{6}=\dfrac{2}{6}=\dfrac{1}{3}$