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What is the profitability index

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Reference no: EM133111991

Consider a project that requires an investment of $21,000 today and generates after-tax cash flows as follows.

C01: $10,000

C02: $12,000

C03: $15,000

C04: -$5,000

If the appropriate discount rate is 15 percent, what is the Profitability Index (PI)?

Reference no: EM133111991

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