Question 16
You are offered an investment with returns of $ 2,580 in year 1, $ 4,583 in year 2, and $ 4,611 in year 3. The investment will cost you $ 5,136 today. If the appropriate Cost of Capital (quoted interest rate) is 8.6 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign