Question: Cheyenne Inc. is considering a capital project costing $ 4 3 7 4 0 . The project is projected to provide annual cost savings of

Cheyenne Inc. is considering a capital project costing $43740. The project is projected to provide annual cost savings of $19000 for
the first 2 years and $15000 for the third year. The expected salvage value is $0 and the company uses straight-line depreciation.
Assuming a 10% rate of return, what is the project's profitability index?
Cheyenne Inc. is considering a capital project costing $43740. The project

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