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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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