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The profitability index ( PI ) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by

The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the absolute value of its Initial cash outflow. Consider this case:
Purple Whale Foodstuffs Inc. is considering investing $3,000,000 in a project that is expected to generate the following net cash flows:
\table[[Year,Cash Flow],[Year 1,$325,000
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