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Assume that a company is considering a capital investment project with a four year time horizon and the following cash flows: Cost of new equipment

Assume that a company is considering a capital investment project with a four year time horizon and the following cash flows: Cost of new equipment Working capital required Annual net cash inflows Maintenance and repairs in third year Salvage value of equipment in fourth year $ 210,000 $ 50,000 $ 100,000 $ 40,000 $ 30,000 Click here to view Exhibit 140-1 and Exhibit 140-2, to determine the appropriate discount factors) using the tables provided. Assuming the company's required rate of return is 20%, the profitability index of the project is closest to: Multiple Choice 1,19 1.31. 1.15. 1.05

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