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Questions 14 -20 are all based on the following information, Mr. Woodrider the CEO of Woodstock Wood Chippers, Inc believes that the firm could create

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Questions 14 -20 are all based on the following information, Mr. Woodrider the CEO of Woodstock Wood Chippers, Inc believes that the firm could create additional value by adding stump grinders to its product mix Machinery used in producing the stump riders would cost $16.500.000. According to Woodridges projections the subsequent net cash flows the company would generate for the investors if it entered the stumo grinder business would be $2.280.000 per year for 12 years. These are the only cash flows expected. The firm's annual weighted average cost of capital for a project of this type seam. QUESTION: What is the PROFITABILITY INDEX for the stamp rinder project DA 1.6582 B 0.0031 6.72368 D. 1.0097 E 0.14 Best selection

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