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What is the profitability index (PI) of a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $
What is the profitability index (PI) of a project that has the following cash flows? The required return is 12.0%.
Year | Cash Flow |
0 | $ (12,000) |
1 | $ 3,000 |
2 | $ 3,000 |
3 | $ 3,000 |
4 | $ 3,000 |
5 | $ 3,000 |
6 | $ 3,000 |
Group of answer choices
0.88
0.93
1.03
1.09
None of these are correct.
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