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A.) 1.05 B.) 1.15 C.) 1.31 D.) 1.19 Assume that a company is considering a capital investment project with a four-year time horizon and the
A.) 1.05
B.) 1.15
C.) 1.31
D.) 1.19
Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows: Cost of new equipment Working capital required Annual net cash inflows Maintenance and repairs in third year Salvage value of equipment in fourth year $ 210,000 $ 50,000 $100,000 $ 40,000 $ 30,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming the company's required rate of return is 20%, the profitability index of the project is closest to
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