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Your firm is considering an investment that will cost $1.5 million today. The project will produce cash flows of $350,000 in year 1, $390,000 in

Your firm is considering an investment that will cost $1.5 million today. The project will produce cash flows of $350,000 in year 1, $390,000 in years 2 through 4, and $450,000 in year 5

(v) Calculate the Profitability Index (PI) at the following required rates of return: (a) 8% (b) 10% (c) 12% (d) 14%

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