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Tule TIme Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the intial outlay for
Tule TIme Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the intial outlay for such a production is $1,500,000 and the appropriate discount rate is 6% for the cash flows, then what is the profitability index for the project?
a) 0.11
b) 1.11
c) 0.90
d) 1.90
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