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What is the PI of a project

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Question - Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 7.40 percent. What is the PI of a project if the initial costs are $1,762,624 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $689,928 per year at the end of the year.

Reference no: EM132764434

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