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Ryan plans to open a pizza shop in College town Alabama this fall. The cost of this project will be $325,000. She expects to generate
Ryan plans to open a pizza shop in College town Alabama this fall. The cost of this project will be $325,000. She expects to generate operating cash flows of $67,000 for the first 7 years, after which she will decided whether to quit or continue to operate. If her cost of capital is 13%, what is the projects profitability index? Is the project acceptable?
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