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Santa's Closets has a project costing $22,500 and producing cash flows at the end of the following years of $12,000,$8,000, and $4,000 respectively. Should this
Santa's Closets has a project costing $22,500 and producing cash flows at the end of the following years of $12,000,$8,000, and $4,000 respectively. Should this project be accepted based on the profitability index rule if the discount rate is 6% ? Why or why not? No; because the Pl is 0.97 No; because the Pl is 1.00 No; because the Pl is 1.09 Yes; because the PI is 0.97 Yes; because the PI is 1.09
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