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What is the profitability index for an investment with the following cash flows given a 9%...

What is the profitability index for an investment with the following cash flows given a 9% required return?

Year      Cash flow

0 -21,000

1 7,400

2 9,800

3 8,900

0.98

0.96

1.00

1.04

Solutions

Expert Solution

NO EXCEL FUNCTION IS USED. SIMPLE PV FACTOR CALCULATIONS


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