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Evaluate the profitability of an investment project using the profitability index (PI) method. Given a project requiring an initial investment of $150,000 and expected cash

  • Evaluate the profitability of an investment project using the profitability index (PI) method. Given a project requiring an initial investment of $150,000 and expected cash flows of $50,000 annually for 5 years, with a discount rate of 8%, compute the PI and interpret its results in terms of project viability and wealth creation potential.
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