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  • 19-03-2024
  • Business
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Calculate the profitability Index (PI) for a project that has the following cash flows? The required return is 13.0%.
Year Cash Flow
0 $(45,000)
1 $ 5,000
2 $ 10,000
3 $ 15,000
4 $ 20,000
5 $ 25,000
a. 1.08
b. 1.01
c. 1.27
d. None of these are correct.
e. 1.22

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