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Dinoco Corporation is currently considering a project that will produce cash inflows of $20,000 a year for two years, followed by $25,000 in year three.

Dinoco Corporation is currently considering a project that will produce cash inflows of $20,000 a year for two years, followed by $25,000 in year three. The cost of the project is $60,000. What is the profitability index if the discount rate is 9 percent?

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0.91

1.00

0.93

1.10

None of the answers is correct.

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