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Tech Innovations Inc. is evaluating a new project with an initial investment of $500,000. The project is expected to generate cash flows of $200,000 per
Tech Innovations Inc. is evaluating a new project with an initial investment of $500,000. The project is expected to generate cash flows of $200,000 per year for five years. If the company's cost of capital is 10%, calculate the profitability index (PI) for the project and advise Tech Innovations on whether to proceed.
Calculate the profitability index (PI) for the project and advise Tech Innovations on whether to proceed.
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