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Question 11 5 pts You lead an investment team evaluating a project with the following attributes: an initial cost of $50,000 and cash flows of
Question 11 5 pts You lead an investment team evaluating a project with the following attributes: an initial cost of $50,000 and cash flows of $18,000, $25,000, and $18,000 for Years 1 to 3, respectively. The project has a required return of 12.00 percent. Based on the profitability index rule, should the company accept the project? Why or why not? O No; because the Pl is 0.78 O No; because the PL is 0.98 O Yes; because the Pl is 1.02 O Yes; because the Pl is 1.01
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