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What is the pi of a project if project life is estimated

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Problem 1: Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 11.68 percent. What is the PI of a project if the initial costs are $1,636,952 and the project life is estimated as 6 years? The project will produce the same after-tax cash inflows of $546,582 per year at the end of the year.

Reference no: EM133003482

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