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Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 10.63 percent. What is the PI of
Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Minings cost of capital is 10.63 percent. What is the PI of a project if the initial costs are $2,404,260 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of $555,661 per year at the end of the year. |
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