Please show all work. What is the profitability index for the set of cash flows

Question

Please show all work.

  

What is the profitability index for the set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

  

  

What is the profitability index for the set of cash flows if the relevant discount rate is 15 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

  

  

What is the profitability index for the set of cash flows if the relevant discount rate is 22 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

  

Year Cash Flow 0 –$ 18,300 1 10,600 2 9,500 3 6,000

Explanation / Answer

Profitability Index = Total Cash Inflow

Total Cash Outflow

Year Cash Flows Discount Rate @10% Cash Flows 0 -18300 1 1 10600 0.909         9,635.40 2 9500 0.826         7,847.00 3 6000 0.751         4,506.00       21,988.40 Cash Outflow       18,300.00 Profitability Index 1.20

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