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consider a capital expenditure project to purchase and install new equipment with an initial cash outlay lf $35,000. the project is expected to generate net
consider a capital expenditure project to purchase and install new equipment with an initial cash outlay lf $35,000. the project is expected to generate net after tax cash flows each year of $2800 for ten years and at the end of the project, a one time after tax cash flows of 15,000 is expected. The firm has a weighted average cost of capital of 10% and requires a 7 year payback. calculate the profitability index for the project
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