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A project involves the immediate purchase of an item of plant costing OMR 50,000. It would generate annual cash flows of OMR 17,500 starting from

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A project involves the immediate purchase of an item of plant costing OMR 50,000. It would generate annual cash flows of OMR 17,500 starting from first year. The plant purchased has no scrap value when the project terminates after 5 years. The cost of capital is estimated at 10% Calculate the profitability index with above information. Select one: O A. 1.42 B. None of the given option O C. 1.75 D. 1.33

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