Firm is reviewing a project that has an initial cost

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A firm is reviewing a project that has an initial cost of $67,000. The project will produce annual cash inflows, starting with Year 1, of $8,000, $13,400, $18,600, $24,100, and finally in Year 5, $37,900. What is the profitability index if the discount rate is 11 percent?

A) .92

B) .98

C) 1.02

D) 1.05

E) 1.09

Reference no: EM131585805

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