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Compute profitability index for series of future cash flows

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Reference no: EM132764484

Problem 1: Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 7.21 percent. The initial outlay is $367,783.

Year 1: $185,316

Year 2: $155,040

Year 3: $129,521

Year 4: $159,741

Year 5: $194,679

Reference no: EM132764484

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