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A project has an initial cost of $32,100. The project is expected to produce cash inflows of $11,800, $0, and $22,600 over the next three
- A project has an initial cost of $32,100. The project is expected to produce cash inflows of $11,800, $0, and $22,600 over the next three years, respectively. If the appropriate discount rate is 14 percent, should this project be accepted based on its profitability index? Why or why not?
- Yes; the PI is 0.96
- Yes; the PI is 0.80
- Yes; the PI is 1.08
- No; the PI is 0.96
- No; the PI is 0.80
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