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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
Assume the following information for a capital budgeting proposal with a fiveyear time horizon:
Initial investment:
Cost of equipment zero salvage value $
Annual revenues and costs:
Sales revenues $
Variable expenses $
Depreciation expense $
Fixed outofpocket costs $
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using the tables provided.
Assuming a discount rate of this proposals profitability index is closest to:
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