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You are analyzing a project and have gathered the following data: Year Cash Flow 0 - 175,000 1 47200 2 86300 3 46000 4 40700
You are analyzing a project and have gathered the following data:
Year Cash Flow
0 - 175,000
1 47200
2 86300
3 46000
4 40700
Required payback period 2.5 years
Required AAR 7.50%
Required return 8,50%
Based on the profitability index of _____ for this project you should _____ the project:
a) 0.95: accept
b) 1.04: accept
c) 1.06: accept
d) 0.95:reject
e) 1.06:reject
(show step by step work ) i need fourmulas , so please don't use schdual or excel to solve it!
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