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1. Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 12 percent? Why
1. Based on the profitability index rule, should a project with the following cash flows be accepted if the discount rate is 12 percent? Why or why not?
Year
Year | Cash Flow |
0 | $-26,200 |
1 | $11,800 |
2 | $0 |
3 | $24,900 |
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