$\begin{array} { c c c c c }
& 0 & 1 & 2 & 3 \
\text { Investment B: } & - \$ 1 \text { million } & \$ 500,000 & \$ 400,000 & \$ 300,000
\end{array}$
The timeline of an investment is shown above. If the cost of capital is 5%, what is the profitability index of this investment?

Question

$\begin{array} { c c c c c } 
& 0 & 1 & 2 & 3 \
\text { Investment B: } & - \$ 1 \text { million } & \$ 500,000 & \$ 400,000 & \$ 300,000
\end{array}$
The timeline of an investment is shown above. If the cost of capital is 5%, what is the profitability index of this investment?

Quizplus · Accepted Answer

The Answer of $\begin{array} { c c c c c } 
& 0 & 1 & 2 & 3 \
\text { Investment B: } & - \$ 1 \text { million } & \$ 500,000 & \$ 400,000 & \$ 300,000
\end{array}$
The timeline of an investment is shown above. If the cost of capital is 5%, what is the profitability index of this investment?

0123 Investment B: −$1 million $500,000$400,000$300,000\begin{array} { c c c c c } & 0 & 1 & 2 & 3 \\\text { Investment B: } & - \$ 1 \text { million } & \$ 500,000 & \$ 400,000 & \$ 300,000\end{array} Investment B: ​0−$1 million ​1$500,000​2$400,000​3$300,000​

$\begin{array} { c c c c c } & 0 & 1 & 2 & 3 \\\text { Investment B: } & - \$ 1 \text { million } & \$ 500,000 & \$ 400,000 & \$ 300,000\end{array}$