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Assume the following information for a capital budgeting proposal with a five-year time horizon Initial investment: Cost of equipment (zero salvage value) Annual revenues and

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Assume the following information for a capital budgeting proposal with a five-year time horizon Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: $375,000 Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $13 , $ 50,000 $ 40,000 Click here to view Exhibit 148.1 and Exhibit 148-2. to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 12%, this proposal's profitability index is closest to Multiple Choice 1.34 125 O O 1.20 0 130

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