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Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial
Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $2,000,000, and the project would generate incremental free cash flows of $650,000 per year for 5 years. The appropriate required rate of return is 8 percent. What is the projects profitability index?
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