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What is the profitability index

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Question - A project has cash flows of -$142,000, $60,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 12.2 percent. What is the profitability index? Should you accept or reject the project based on this index value?

a. 1.07 reject

b. 1.10; accept

c. .93; reject

d. .93; accept

e. 1.02; accept

Reference no: EM132979006

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