Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
You are considering a project that has an initial outlay of $50 000.
You are considering a project that has an initial outlay of $50 000. The project will generate in 12 months cash inflows of either $100,000, $150,000, or $200,000 per year for four years (with equal probability), followed by certain payment of $80,000 for one more year. Considering the discount rate of 10%, what is the profitability index?
