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3. A project has an initial cost of $30,000 and will produce cash inflows of $8,000 per year for the next 5 years. In addition,

3. A project has an initial cost of $30,000 and will produce cash inflows of $8,000 per year for the next 5 years. In addition, the project will have a salvage value of $2,000 in year five. Compute the projects benefit cost ration, or profitability index. Interest is 10%.

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