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ABC is considering buying a new equipment. The equipment costs $350,000. The after-tax cash flows of $60,000 is expected in the first year, and it
ABC is considering buying a new equipment. The equipment costs $350,000. The after-tax cash flows of $60,000 is expected in the first year, and it increases by $10,000 annually for another five years. The new equipment will be sold $20000 at the end of the project. Assuming a required return of 15%, what is the project's profitability index?
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