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Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 6.12 percent. What is the PI
Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 6.12 percent. What is the PI of a project if the initial costs are $1,439,872 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of $539,536 per year at the end of the year. Round the answer to two decimal places. Your Answer:
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To calculate the profitability index PI of a project we need to divide the present value of the pr...
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Introduction to Corporate Finance
Authors: Scott B. Smart, William L Megginson
2nd edition
9780324658958, 0324658958, 978-0324657937
