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Calculate the profitability index of the project

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Reference no: EM132648441

A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the profitability index of the project.

Reference no: EM132648441

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