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Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 11.35 percent. What is the PI of

Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 11.35 percent. What is the PI of a project if the initial costs are $2,118,606 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $479,544 per year at the end of the year.

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