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Project Profitability Index Pascal Company is considering a five-year project that would require a $1,000,000 investment and life of five years. The company's discount rate
Project Profitability Index Pascal Company is considering a five-year project that would require a $1,000,000 investment and life of five years. The company's discount rate is 16% and their marginal tax rate is 32%. The project would provide annual before tax operating income of $620,000 in each of five years. Rounded to one decimal place, the profitability index for this project would be: Multiple Choice 34.2% 79.9% 38.0% 103.0% None of the above
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