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Assume the following information for a capital budgeting proposal with a five-year time horizon $ 375,000 Initial investment: Cost of equipment (zero salvage value) Annual

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Assume the following information for a capital budgeting proposal with a five-year time horizon $ 375,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out of pocket costs $ 300,000 $ 130,000 $ 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 Multiple Choice 1.30 O 1.25 1.20. O O 1.34

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