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Profitability Index

How do you calculate the Profitability Index using the following information, and what does the Profitability end up being using the following given?

Please see the attached for the question and information.

Outlined below is the following project information:

Year Cash Flow
0 ???
1 $29,000
2 $58,000
3 $22,000

Required rate of return 10 %

If the Payback Period (simple payback) is exactly 2 years, what is the project's Profitability Index?

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Outlined below is the following project information:

Year Cash Flow
0 ???
1 $29,000
2 $58,000
...

Solution Summary

This solution is comprised of a detailed explanation to answer if the Payback Period (simple payback) is exactly 2 years, what is the project's Profitability Index.

$2.19