Calculate the profitability index

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Reference no: EM132034013

1. What is the payback period of a project with an initial investment of $15,600 and annual cash flows of $1,125?

2. A project has an initial investment of $195,300 and will generate 55 annual cash flows of $61,400. Assume a cost of capital of 15%.

Calculate the profitability index? (PI) and The present value of the cash inflows.

Reference no: EM132034013

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