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3. Rexburg Corporation has been presented with an investment opportunity that will yield end- of-year cash flows of $25,000 per year in years 1 through

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3. Rexburg Corporation has been presented with an investment opportunity that will yield end- of-year cash flows of $25,000 per year in years 1 through 3, $30,000 per year in years 4 and S, and $35,000 in year 6. The investment will cost the firm $100,000 today, and the firm's cost of capital is 9%. a. What is the Profitability Index of this project? (4 pts.) b. Is this project acceptable? Why? (2 pts.)

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