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Find the profitability index of buying the beauty salon

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Reference no: EM132719013

Mary Bighair is considering investing in a beauty salon that will cost her $17,000. The after-tax cash flows on the investment should be about $4,000 per year for the next 6 years. Her opportunity cost of capital is 8 percent. Find the Profitability Index (PI) of buying the beauty salon: (Do not round intermediate calculations; round final answer to four decimals, i.e. 123.4567)

Reference no: EM132719013

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