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Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 11.90 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 11.90 percent. What is the PI of a project if the initial costs are $2,353,801 and the project life is estimated as 6 years? The project will produce the same after-tax cash inflows of $447,851 per year at the end of the year.
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