FIN 5130 – ABC Inc. is considering an investment of $1,750 million
January 8th, 2018
ABC Inc. is considering an investment of $1,750 million with after-tax cash inflows of $332 million per year for six years and an additional after-tax salvage value of 87 million in Year 6. The required rate of return is 8%. What is the investment’s Profitability Index (PI)?