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Midland Community Hospital is planning to purchase a new MRI system. The hospital estimates that the present value of the expected cash inflow from utilization
Midland Community Hospital is planning to purchase a new MRI system. The hospital estimates that the present value of the expected cash inflow from utilization of the system is $9,500,000 and the present value of the expected cash outflow is $4,600,000. What is the profitability index of the project?
12.07
52.07
2.07
0.007
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