Invest in a new capital budgeting project

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Reference no: EM1389600

The Sanchez Company has decided to invest in a new capital budgeting project that will require a net investment of $450,000. This project is expected to generate annual operating cash flows of $128,000, for five years. If your required rate of return is 12%, what is the profitability index for this project?

Reference no: EM1389600

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