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The Radish Corporation is considering investing in a project with an initial cash outlay of $1,500. Its accounting profits are $799 in Year 1, then
The Radish Corporation is considering investing in a project with an initial cash outlay of $1,500. Its accounting profits are $799 in Year 1, then $150 in Year 2 and $200 in Year 3. The cash flows generated from operations are $750 in Year 1, then $1,000 in Year 2, and $1,200 in Year 3. If the applicable discount rate is 10%, the PROFITABILITY INDEX for this project is: Select one: a. 1.6 b.0.6 O c 1.8 O d. 15.8
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