medium · CFA Level I equity

Meridian Pack is considering a project with an initial outlay of 100,000 and expected year-end cash flows of 60,000 for two years.

If the cost of capital is 10%, what is the project's Profitability Index (PI)?

  1. C. 1.200
  2. A. 1.041
  3. B. 0.041

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