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Mike is starting a new project that will cost $56,000 today and is forecasted to earn an inflow of $6,000 during the first year, followed
Mike is starting a new project that will cost $56,000 today and is forecasted to earn an inflow of $6,000 during the first year, followed by 8 annual cash flows of $12,000 thereafter. Cost of capital is 9.8%. What is the project's Profitability Index?
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