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Appropriate cost of capital

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You are offered an investment with returns of $ 1,790 in year 1, $ 4,676 in year 2, and $ 5,525 in year 3. The investment will cost you $ 5,919 today. If the appropriate Cost of Capital (quoted interest rate) is 6.8 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01.

Reference no: EM131152647

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