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You calculate the profitability index of a project by dividing the present value of the project's expected annual after-tax cash flows by the project's cost

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You calculate the profitability index of a project by dividing the present value of the project's expected annual after-tax cash flows by the project's cost of capital. dividing the present value of the expected annual after-tax cash flows by the cash outflow to initiate the project. multiplying the expected cash inflow by the internal rate of return O multiplying the internal rate of return by the project's cost of capital. none of the above. O

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