Based upon the following data: calculate the Profitability Index. Cost = $325Present value of future cash flows = $350
Question
Solution 1
The Profitability Index (PI) is calculated by dividing the present value of future cash flows by the initial investment cost.
Here's the step-by-step calculation:
- Identify the present value of future cash flows. In this case, it's $350.
- Identify the initial investment cost. In this case, it Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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