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Year Cash Flow 0 $7,800 1 2,200 2 3,600 3 4,100 a. What is the profitability index for the cash flows if the relevant discount

Year Cash Flow

0 $7,800

1 2,200

2 3,600

3 4,100

a. What is the profitability index for the cash flows if the relevant discount rate is 7 percent?

b. What is the profitability index for the cash flows if the relevant discount rate is 17 percent?

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