What is the investment''s profitability index pi

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Question: ABQ Inc. considering an investment that will cost $1.1 million today. The investment will produce cash flows of $400,000 in years one and two, $250,000 in years three and four, and $200,000 in years five and six. The discount rate that your firm uses for projects of this type is 8.25%. What is the investment's profitability index (PI)?

Reference no: EM133433446

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