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Elise will open a greenhouse shop in 2021 where she will sell small plants and flowers to customers for their gardens. The construction of the

Elise will open a greenhouse shop in 2021 where she will sell small plants and flowers to

customers for their gardens. The construction of the greenhouse will cost $300,000 with

installation cost of $25,000. She estimates that annually she will generate after-tax cash

flows of $67,000 for 7 years. If her required rate of return is 13%, what is the projects

profitability index? Should she invest in this project?

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