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Rotund Feline Cigar Corp is looking to open a new factory in the historic Ybor City neighborhood of Tampa to sell cigars to the revelers
Rotund Feline Cigar Corp is looking to open a new factory in the historic Ybor City neighborhood of Tampa to sell cigars to the revelers enjoying local nightlife in the area. They anticipate that the factory will cost $24.3 M to open today, but will produce cash flows of $7.4 M, $10.1 M, and $9.0 M over the next three years, respectively. What is the profitability index of this investment given a 6.39% required return?
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