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Posted on May 19, 2024

The Black Horse is currently considering a project that will produce cash inflows of RM12,000 a year for three years followed by RM6,500 in year

The Black Horse is currently considering a project that will produce cash inflows of

RM12,000 a year for three years followed by RM6,500 in year 4. The cost of the

project is RM38,000. What is the profitability index if the discount rate is 7 percent?

Should the company accept the project? Why?

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