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What is the profitability index for an investment with the following cash flows given a 10 percent required return? Year Cash Flow 0 $-33,000 1
What is the profitability index for an investment with the following cash flows given a 10 percent required return?
| Year | Cash Flow |
| 0 | $-33,000 |
| 1 | $13,700 |
| 2 | $16,000 |
| 3 | $15,400 |
Note: Please explain how the present value factor is calculated.
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