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A project has an initial cost of $30 million. The project is expected to generate a cash flow of $2.85 million at the end of
A project has an initial cost of $30 million. The project is expected to generate a cash flow of $2.85 million at the end of the first year. All the subsequent cash flows will grow at a constant growth rate of 3.85% forever in future. If the appropriate discount rate of the project is 11%, what is the profitability index of the project?
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