Calculate the profitability index of investment

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Question - A friend who owns a perpetuity that promises to pay £1,000 at the end of each year, forever, comes to you and offers to sell you all of the payments to be received after the 25th year for a price of £1,000. Calculate the profitability index (PI) of investment. What do you know about the investment's net present value (NPV) and its internal rate of return (IRR)?

Reference no: EM133091797

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