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What is the profitability index for an investment with the following cash flows given a 9 percent required return? Year Cash Flow 0 $-21,000 1

What is the profitability index for an investment with the following cash flows given a 9 percent required return?

Year Cash Flow
0 $-21,000
1 $7,200
2 $9,700
3

$8,600

1.04

1.00

.96

.98

1.02

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