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Calculate the profitability Index (PI) for a project that has the following cash flows? The required return is 13.0%. Year Cash Flow 0 $ (45,000)
Calculate the profitability Index (PI) for a project that has the following cash flows? The required return is 13.0%.
| Year | Cash Flow |
| 0 | $ (45,000) |
| 1 | $ 25,000 |
| 2 | $ 20,000 |
| 3 | $ 15,000 |
| 4 | $ 10,000 |
| 5 | $ 5,000 |
Group of answer choices
0.99
1.04
1.22
None of these are correct.
1.27
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Accounting What the Numbers Mean
Authors: David Marshall, Wayne McManus, Daniel Viele
12th edition
978-1260565492
