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Compute the potential investment profitability index

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Reference no: EM132773735

Question - The following information is available for a potential investment for Panda Company:

Initial investment $100000

Net annual cash inflow 20000

Net present value 39650

Salvage value 10000

Useful life 10 yrs.

Required - Compute the potential investment's profitability index? Can you please explain how to get that?

Reference no: EM132773735

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