Question: What is the correct answer? Imagine a project with an initial investment of $75M. This project offers $0 in Year 1 and $20M in Year

What is the correct answer?

Imagine a project with an initial investment of $75M. This project offers $0 in Year 1 and $20M in Year 2. Starting from Year 3 , the FCFs will grow 8% per year. If the project is expected to last eight years and your discount rate is 10.80%, what are the payback period (PBP) and the profitability index (PI) of this project? PI=1.53,PBP=4.400 PI=1.41,PBP=4.852 PI=1.41,PBP=5.834 PI=1.53,PBP=5.834 PI=1.41,PBP=4.400

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