Question: Using a 7% discount rate, what is the profitability index (PI) for the following cash flow? Time 0: -$13,000 Time 1: $2,000 Time 2: $4,000

Using a 7% discount rate, what is the profitability index (PI) for the following cash flow? Time 0: -$13,000 Time 1: $2,000 Time 2: $4,000 Time 3: $4,500 Time 4: $6,000 Time 5: $9,000 Using a 7% discount rate, what is the profitability index (PI) for the following cash flow? Time 0: -$13,000 Time 1: $2,000 Time 2: $4,000 Time 3: $4,500 Time 4: $6,000 Time 5: $9,000

1.54

1.05

1.83

.96

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