Question: Question 2 1.5 pts You are asked to evaluate a new tractor project for Deere. The engineers and marketing and accounting folks have pooled their

Question 2 1.5 pts You are asked to evaluate a new tractor project for Deere. The engineers and marketing and accounting folks have pooled their efforts to generate the following expectations about the project's cash flows (FCFF): CFO = -88.6, CF1 = 20, CF2 = 55, CF3 = 60, CF4 = 25, CF5 = 10. If the WACC is 10%, what will be the profitability index for this project? (write this number as a decimal and not as a percentage, e.g. 0.11 not 11%. Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
