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Beltway Co. is considering purchasing equipment that has an initial investment of $41000. The company's required rate of return is 12%. Annual cost savings
Beltway Co. is considering purchasing equipment that has an initial investment of $41000. The company's required rate of return is 12%. Annual cost savings are projected to be $20000 for year 1, $16000 for year 2, and $12000 for year 3. What is the investment's profitability index? Present Value PV of an Annuity Year of 1 at 12% of 1 at 12% 1 0.893 0.893 2 0.797 1.690 3 0.712 2.402 O 1.90. O 1.94. 1.96. O 1.92.
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