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An independent capital budgeting project is expected to have the following cash flows. Year Cash 0 -$225,000 1 $75,000 2 $125,000 3 $200,000 a. Compute

An independent capital budgeting project is expected to have the following cash flows.

Year Cash
0 -$225,000
1 $75,000
2 $125,000
3 $200,000

a. Compute the net present value at a 17 percent required rate of return b. Compute the profitability index at a 17 percent required rate of return c. Should the project be accepted?

A. a. $55,290.87 b. 1.25 c. Yes

B. a. -$55,290.87 b. 1.25 c. Yes

C. a. $55,290.87 b. 1.25 c. No

D. a. -$55,290.87 b. 1.25 c. No

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