George William buys a machine for his business. The machine costs $150,000. George estimates that the machine can produce $40,000 cash inflow per year for the next five years. George's cost of capital is 10 percent. What is the approximate profitability index for this investment?
A) 1.11
B) 1.01
C) 0.91
D) 1.16
Correct Answer:
Verified
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