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A firm is considering a project that has an initial investment of $250,000 and is expected to produce cash inflows of $50,000 per year
A firm is considering a project that has an initial investment of $250,000 and is expected to produce cash inflows of $50,000 per year for 10 years.. The firm's cost of capital is 11.4%, . What is the project's profitability index? Based on this, should the project be accepted? 2.0, accept because PI > 1.0 O 1.16, reject because PI < cost of capital O 1.16, accept because PI > 1.0 O 0.16, reject because PI < 1.0
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