Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company’s project, assuming the company’s cost of capital is 8.76 percent.
Food, Inc. is using the profitability index (PI) when
evaluating projects. You have to find the PI for the company’s project, assuming the company’s cost of capital is 8.76 percent. The initial outlay for the project is $414,752. The project will produce the following end-of-the-year after-tax cash inflows of Year 1: $160,171 Year 2: $47,363 Year 3: $223,301 Year 4: $498,229 Round the answer to two decimal places.
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