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The following information is available for a potential investment for Panda Company: Initial investment $ 100000 Net annual cash inflow 20000 Net present value 40150

The following information is available for a potential investment for Panda Company:


Initial investment$100000
Net annual cash inflow20000
Net present value40150
Salvage value10000
Useful life10 yrs.

The potential investment’s profitability index is

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