How do you calculate the Profitability Index for multiple cash flows on a TI BAII Plus. The study problem goes like this:

Given the following cash flows; Yr 0 = -$12,000, Yr 1 = $6,200, Yr 2 = $5,600, Yr 3 = $3,900. If the relevant discount rate is 10% and 15%, what is the profitability index?

Given the following cash flows; Yr 0 = -$12,000, Yr 1 = $6,200, Yr 2 = $5,600, Yr 3 = $3,900. If the relevant discount rate is 10% and 15%, what is the profitability index?

## This question was asked on Nov 16, 2010.

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