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While evaluating an investment proposal, the CFO of a company determined the profitability index to be 0.562. The cash flows, starting in Year 1, are
While evaluating an investment proposal, the CFO of a company determined the profitability index to be 0.562. The cash flows, starting in Year 1, are $18.0 million each year. The project ends after 6 years. If the opportunity cost of capital is 7.9%, what is the initial investment in the project?
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