initial cost of a project
How to find the initial cost of the project (finance)? First off I ALREADY KNOW THE ANSWER. I'm not looking for you to give me the answer I want to know HOW to get it. A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project? The answer is 8166.19 but I cant figure out how to solve it.