Question: EV Hyper Chargers is considering a project with the following cash flows: Year O Year 1 Year 2 Year 3 Year 4 -$133 million
EV Hyper Chargers is considering a project with the following cash flows: Year O Year 1 Year 2 Year 3 Year 4 -$133 million $30 million $40 million $55 million $75 million Calculate the Profitability Index (PI) of this project and pick a suitable recommendation. Assume a WACC of 13%. Pl=-1.0676 < 0, so reject PI 0.9367 < 1, so reject OPI = 0.9367 > 0, so accept PI 1.0676 > 0, so accept = PI 1.0676> 1, so accept = I
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