What is the investments profitability index

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Reference no: EM13258398

An investment of $20000 will create a perpetual after-tax cash flow of $2000. The required rate of return is 8%. What is the investment's profitability index?

a. $1.00
b. $1.08
c. $1.16
d. $1.25

Reference no: EM13258398

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