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A company is considering the replacement of its old, fully depreciated sanding machine, Machine A which has a cost of $74,440.00, a 5-year expected life,

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A company is considering the replacement of its old, fully depreciated sanding machine, Machine A which has a cost of $74,440.00, a 5-year expected life, and after-tax cash flows (labor savings and depreciation) of $66,000.00 per year. Assume that Wilkins's cost of capital is 8.0%. What is the Profitability Index (PD) of Machine A? 3,54 4.00 6.51 1.20 5.47

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