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Task 3: The firm is considering the purchase of a new device that costs 7,000. Assume a required rate of retum of 8% and the

Task 3: The firm is considering the purchase of a new device that costs 7,000. Assume a required rate of retum of 8% and the following cash flow schedule: Year 1 3,000 Year 2 2,500 Year 3 2,000 1) Calculate the profitability index of the project. 2) Should the firm accept this project

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