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Calculate the Profitability Index (PI) of a project whose cost is $55,000 and will generate an after-tax cash flow $10,000 each year in the next

Calculate the Profitability Index (PI) of a project whose cost is $55,000 and will generate an after-tax cash flow $10,000 each year in the next 6 years with a required rate return of 10%:

The right answer is?

a) $0.90

b)$1.44

c) $1.32

d) $0.79

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