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A firm is considering a project with an initial investment of $3,000,000.The firm's cost of capital is 12% and the expected cash flows are as
A firm is considering a project with an initial investment of $3,000,000.The firm's cost of capital is 12% and the expected cash flows are as follows:
Year 1: $1,500,000
Year 2: $0
Year 3: $2,250,000
The profitability index equals:
Select one:
a..12
b.25%
c..98
d..25
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