Question: 4. A project has an initial outlay of $200,000 and the end of year after-tax cash flows below. Compute the profitability index for the project
4. A project has an initial outlay of $200,000 and the end of year after-tax cash flows below. Compute the profitability index for the project assuming a cost of capital of 14%: End of Year After tax cash flow 1 $40,000 2 $50,000 3 $80,000 4 $80,000 100,000 O a. 1.13 b. 1.20 c. 1.26 O d. 1.37 O e. 1.41
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