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Frank Lord is considering an investment of $855 million with expected after tax cash inflows of $325 million per year for 6 years and an

Frank Lord is considering an investment of $855 million with expected after tax cash inflows of $325 million per year for 6 years and an additional after-tax salvage value of $50 million in Year 6. The required rate of return is 10 percent. What is the investments profitability index?

a). 1.16

b). 1.69

c). 1.85

d). 1.10

e). 1.56

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