Question: InnerC, Inc. is currently considering an five-year project that has an initial outlay or cost of $60,000. The future cash inflows from its project for
InnerC, Inc. is currently considering an five-year project that has an initial outlay or cost of $60,000. The future cash inflows from its project for years 1 through 5 are the same at $20,000. InnerC has a discount rate of 15%. Because of concerns about funds being short to finance all good projects, InnerC wants to compute the profitability index (PI) for each project. What is the PI for InnerC's current project?
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