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What is the profitability index of the project

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Reference no: EM132544149

1) We-Know-Widgets, Inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $1,000 in Year 1, $4,000 in Year 2, and $15,000 in Year 3. The cost of capital is 10%.

What is the profitability index of the project?

2) Which of the following techniques may ignore the terminal cash flow of a project?

A) NPV
B) IRR
C) Payback
D) Both b and c

Reference no: EM132544149

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