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What is the profitability index (PI) of the following project? The cost of capital is 5%. Year Project A 0 -1,000 1 700 2 500
What is the profitability index (PI) of the following project? The cost of capital is 5%.
| Year | Project A |
| 0 | -1,000 |
| 1 | 700 |
| 2 | 500 |
| 3 | 300 |
Select one:
a. 1.460b. 1.156c. 1.691d. 1.552e. 1.379
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
