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A new product has startup costs of $338,200 and projected cash flows of $102,000, $187,500, and $245,000 for Years 1 to 3, respectively. What is
A new product has startup costs of $338,200 and projected cash flows of $102,000, $187,500, and $245,000 for Years 1 to 3, respectively. What is the profitability index given a 9 percent required return?
Multiple Choice
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.71
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.77
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1.16
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1.30
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1.41
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