Solution-How the profitability index equals

How the profitability index equals

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Reference no: EM132691808

A firm is considering a project with an initial investment of $3,000,000. The firm's cost of capital is 12% and the expected cash flows are as follows:

Year 1: $1,500,000
Year 2: $0
Year 3: $2,250,000

Problem 1: The profitability index equals:

Select one:

a. .12
b. 25%
c. .98
d. .25

Reference no: EM132691808

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How the profitability index equals

Reference no: EM132691808

Reference no: EM132691808

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