Suppose you have an opportunity to invest in a project,which is expected to generate $6,800 in year 1,$7,200 in year 2,and $7,500 in year 3.The appropriate risk-adjusted discount rate for the project is 10.5 percent.The project's initial investment is $15,000.What is the profitability index?
A) 1.29
B) 1.17
C) 0.85
D) 0.17
Correct Answer:
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