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Earl Inc is considering a project with the following cash flows. Assume the cost of capital is 12%, what is the profitability index of this

Earl Inc is considering a project with the following cash flows. Assume the cost of capital is 12%, what is the profitability index of this project?

Year	0	1	2	3
Cashflows	-$1000	$600	$500	$400

a. 1.19

b. 0.22

c. 1.80

d. 0.18

e. 0.26

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