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Talley Manufacturing Has a Project That Requires an Initial Investment

Question 55

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Talley Manufacturing has a project that requires an initial investment of $150,000 and has the following expected stream of cash flows: Talley Manufacturing has a project that requires an initial investment of $150,000 and has the following expected stream of cash flows:   Assuming the company's cost of capital is 14 percent, what is the profitability index for the project? A)  0.849 B)  1.320 C)  1.502 D)  1.405 Assuming the company's cost of capital is 14 percent, what is the profitability index for the project?


A) 0.849
B) 1.320
C) 1.502
D) 1.405

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