Question: Profitability index Estimating the cash flow generated by $ 1 invested in a project The prontability index ( ? P I ) is a capital
Profitability index
Estimating the cash flow generated by $ invested in a project
The prontability index is a capital budgeting tool that is derined as the present value of a project's cash infows divided by the abeolute value of its initial cash outhow. Consider this case:
Fuzzy Badger Transport Company is considering investing $ in a project that is expected to generate the rollowing inet cash alaws:
tableYearCash FlowYear $
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