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An investment project has the following cash flows: Year Cash Flow 0 -$100 1 $20 2 $50 3 $70 What is the projects Profitability Index

An investment project has the following cash flows:

Year Cash Flow
0 -$100
1 $20
2 $50
3 $70

What is the projects Profitability Index (PI)? Assume that the firms required rate of return on projects in this risk class is 12%.

1.4
8%
1.08
1

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