What is the investments profitability index

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Reference no: EM13298226

Your firm is considering an investment that will cost $750000. today. the investment will produce cash flows of $250000. in year one, $300000. in years 2 - 4, and $100000. in year 5. the discount rate that your firm uses for projects of this type is 13.25%. What is the investments profitability index?

a- 1.4
b- 1.6
c- 1.2
d- .2

Reference no: EM13298226

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