Chapter 9 Quiz eztomheducationcomhmtpx value 250 points Prob

Chapter 9 Quiz ezto.mheducation.com/hm.tpx value 2.50 points Problem 9-15 Calculating Profitability Index [LO7] Year Cash Flow 0 17,600 9,900 8,800 5,300 What is the profitability index for the set of cash flows if the relevant discount rate is 9 percent? (Do no round intermediate calculations and round your answer to 3 decimal places, e.g., 32.1 61.) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 14 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, o.g.. 32.161.) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 21 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g.32.161) Profitability index References Worksheet Difficulty Basic Problem 9-15 Calculating Profitability Index [LO7) Leaming Objective: 09-07 The profitability to net present value

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Year	Cash Flow	PV factor 9%	PV
0	-17600	1	-17600.000
1	9900	0.917431193	9082.569
2	3800	0.841679993	3198.384
3	5300	0.77218348	4092.572
NPV	-1226.475
Profitability Index = (NPV + Initial investment) ÷ Initial Investment