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Today, Northwest Agricultural is investing $30,700 in a pears project with a cost of capital of 9.2%. The pears project will produce cash flows of
Today, Northwest Agricultural is investing $30,700 in a pears project with a cost of capital of 9.2%. The pears project will produce cash flows of $10,950 and $11,800, over the next two years, respectively. During its final two years, the pears project will produce cash flows of $14,900 and $9,400, respectively. What is the profitability index of the 4-year pears project?
1.031 1.392 1.237 1.134 .808Step by Step Solution
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