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A Project Will Cost $20,000 and Is Expected to Produce

question 42

Multiple Choice

A project will cost $20,000 and is expected to produce cash flows of $10,000, $8,000, and $5,000 at the end of each of the first three years, respectively. If the cost of capital is 7%, what is the
Project's profitability index? Round your answer to the nearest hundredth.


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