What is the profitability index of investment

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Reference no: EM131898966

You are offered an investment with returns of $ 1,309 in year 1, $ 4,996 in year 2, and $ 3,823 in year 3. The investment will cost you $ 6,490 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.

Reference no: EM131898966

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