Twosome Company is considering a capital project costing $82,000 with a 3-year life span. The project is expected to have annual cost savings of $26,000 for the first two years and $20,000 for the third year. There is no salvage value. If the company has a cost of capital of 6%, what is the investment's profitability index?

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The Answer of Twosome Company is considering a capital project costing $82,000 with a 3-year life span. The project is expected to have annual cost savings of $26,000 for the first two years and $20,000 for the third year. There is no salvage value. If the company has a cost of capital of 6%, what is the investment's profitability index?

Twosome Company Is Considering a Capital Project Costing $82,000 with a 3-Year