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Calculate the Profitability Index for the Cash Flows Provided in the Table

Question 43

Multiple Choice

Calculate the profitability index for the cash flows provided in the table below.Note: The negative cash flow for year 0 is the initial investment for the project.Assume a required rate of return of 9.00% Calculate the profitability index for the cash flows provided in the table below.Note: The negative cash flow for year 0 is the initial investment for the project.Assume a required rate of return of 9.00% A) 0.85 B) 0.90 C) 1.00 D) 1.11


A) 0.85
B) 0.90
C) 1.00
D) 1.11

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