Suppose that a project has an upfront cost of $135,000 and lasts 4 years, with no...

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Suppose that a project has an upfront cost of $135,000 and lasts 4 years, with no residual value. The relevant cash flows from the project are estimated to be: End of Year 1: $53,000 End of Year 2: $48,000 End of Year 3: $45,000 End of Year 4: $37,000 Suppose that the net present value of this project is deemed to be -$4,374. Given the information above, what is the profitability index (PI) for this set of cash flows? (ROUNDED TO 3 decimal places, i.e. 1.265)? Profitability Index = Suppose that a project has an upfront cost of $135,000 and lasts 4 years, with no residual value. The relevant cash flows from the project are estimated to be: End of Year 1: $53,000 End of Year 2: $48,000 End of Year 3: $45,000 End of Year 4: $37,000 Suppose that the net present value of this project is deemed to be -$4,374. Given the information above, what is the profitability index (PI) for this set of cash flows? (ROUNDED TO 3 decimal places, i.e. 1.265)? Profitability Index =

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First let us know the present value of cash inf... View the full answer