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Q3 A 50- year project has a cost of $500,000 and has annual cash flows of...

Q3
A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the profitability index of the project.
Question 3 options: 2.46
2.16
2.76
2.06
1.76

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Expert Solution

jeff jeffy answered 1 year ago
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