A company is considering a new inventory system that will

Reference no: EM13622768

A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year one, $55,000 in year two, $65,000 in year three, and $40,000 in year four. The firm's required rate of return is 9%. What is the profitability index (PI) of this project?

Reference no: EM13622768

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