What is the project profitability index

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Bill plans to open a self-serve grooming centre in a storefront. The grooming equipment will cost RM325,000, to be paid immediately. Bill expects after-tax cash inflows of RM67,000 annually for 7 years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent. What is the project's profitability index (PI)?

Reference no: EM132618784

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