13. Show that the profitability index (PI), the initial outlay (C0), and the net present value (NPV)
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13. Show that the profitability index (PI), the initial outlay (C0), and the net present value (NPV) of a project are related by the following equation.
NPV C0(1 PI)
(Hint: State both the NPV and the PI in terms of C0 and the sum of all other cash flows.)
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Kirti Kaushal
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