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Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 10.82 percent. What is the PI of

Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 10.82 percent. What is the PI of a project if the initial costs are $1,581,079 and the project life is estimated as 9 years? The project will produce the same after-tax cash inflows of $398,656 per year at the end of the year.

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