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Find the profitability index of buying the beauty salon

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Problem 1: Mary Bighair is considering investing in a beauty salon that will cost her $16,000. The after-tax cash flows on the investment should be about $4,000 per year for the next 5 years. Her opportunity cost of capital is 8 percent. Find the Profitability Index (PI) of buying the beauty salon

Reference no: EM132960668

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