What is the profitability index for an investment with the following cash flows given a 6 percent required return? 1.38 0.72 1.06 0.81 1.23 What is the profitability index for an investment with the following cash flows given a 6 percent required return? Solution Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period) 15700/1.06+18000/1.06^2+17400/1.06^3 =$45440.6322 PI=Present value of inflows/Present value of outflows =$45440.6322/$37000 which is equal to =1.23(Approx)..