DJT, inc. is considering a new investment opportunity that will require an initial investment of $5,951,000.00. The estimated cash flow for year 1 is $1,000,000, for year 2 is $1,500,000, and $2,000,000 for years 3-5. DJT, inc. uses its WACC to evaluate investments. DJT's WACC is 10.37%. What is the Profitability Index for the investment?

Answer rating: 100% (QA)

The Profitability Index PI is a measure used to assess the profitability of an investment by compari... View the full answer