A new product has startup costs of $338,200 and projected cash flows of $102,000,$187,500,and $245,000 for Years 1 to 3,respectively.What is the profitability index given a 9 percent required return?
A) .71
B) .77
C) 1.16
D) 1.30
E) 1.41
Correct Answer:
Verified
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