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Verizon is thinking about building a new set of cell towers. The cost of building these towers today would be 243 million dollars. The new
Verizon is thinking about building a new set of cell towers. The cost of building these towers today would be 243 million dollars. The new towers would then increase future cash flows by 42 million dollars in year 1, 61 million dollars in year 2, 65 million dollars in year 3, and 79 million dollars in year 4. Suppose the cost of capital is 14%. What is the profitability index of this project?
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