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XYZ has the following forecasted income information for a project it is considering. The firm cost of capital is 13%. The project will last for

XYZ has the following forecasted income information for a project it is considering. The firm cost of capital is 13%. The project will last for 3 years and cost $30,000.

Earnings before amortization and taxes23,000Amortization10,000Earnings before taxes13,000Taxes3,640Earnings after taxes9,360


Calculate the Profitability index.

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