The Black Horse is currently considering a project that will produce cash inflows of $11,000 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 9 percent?
A).85
B).93
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 $11,000 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 9 percent?
A).85
B).93
C)1.04
D)1.09
E)1.12

The Black Horse Is Currently Considering a Project That Will