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IBM is planning to produce an expert system based on artificial intelligence and expects the following cash flows (in $ million) at the end of
IBM is planning to produce an expert system based on artificial intelligence and expects the following cash flows (in $ million) at the end of each year:
Year | Cash flow |
0 | -37 |
1 | 10 |
2 | 15 |
3 | 20 |
4 | 30 |
The company requires a return of 10% from this project.
Part 1
What is the project's profitability index?
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