Calculate the profitability index for xyz

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Reference no: EM132823773

XYZ has the following forecasted income information for a project it is considering. The firm cost of capital is 13%. The project will last for 3 years and cost $30,000.

Earnings before amortization and taxes 23,000

Amortization 10,000

Earnings before taxes 13,000

Taxes 3,640

Earnings after taxes 9,360

Problem 1: Calculate the Profitability index.

Reference no: EM132823773

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