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B&H,IncIs Currently Considering an Five-Year Project That Has an Initial

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B&H,Inc.is currently considering an five-year project that has an initial outlay or cost of $220,000.The future cash inflows from its project for years 1 through 5 are the same at $50,000.B&H has a discount rate of 8%.Because of capital rationing (shortage of funds for financing) ,B&H wants to compute the profitability index (PI) for each project.What is the PI for B&H's current project?


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