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Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 8.61 percent. What is the PI of

Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 8.61 percent. What is the PI of a project if the initial costs are $1,552,865 and the project life is estimated as 8 years? The project will produce the same after-tax cash inflows of $444,023 per year at the end of the year.

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