The Black Horse is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in year 4.The cost of the project is $38,000.What is the profitability index if the discount rate is 7 percent?
A)0.96
B)0.99
C)1.04
D)1.09
E)1.12

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The Answer of The Black Horse is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in year 4.The cost of the project is $38,000.What is the profitability index if the discount rate is 7 percent?
A)0.96
B)0.99
C)1.04
D)1.09
E)1.12

The Black Horse Is Currently Considering a Project That Will