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QUESTION
1)Project YY requires an initial investment of P4,500,000. The cash inflows expected are P1,500,000 in the first year, P2,000,000 in the second year,...
1) Project YY requires an initial investment of P4,500,000. The cash inflows expected are P1,500,000 in the first year, P2,000,000 in the second year, and P1,600,000 in the third year. Assuming the cost of capital is 9%
a. Calculate the project's profitability index.
b. Should the project be accepted? Why / Why not?
