Anna Taylor buys a machine for her business.The machine costs $150,000.Anna estimates that the machine can produce $40,000 cash inflow per year for the next five years.Her cost of capital is 12 percent.What is the approximate profitability index of this investment?
A) 0) 96
B) 1) 10
C) 1) 08
D) 1) 22
Correct Answer:
Verified
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