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Trovato Corporation is considering a project that would require an investment of $62,000. No other cash...

Trovato Corporation is considering a project that would require an investment of $62,000. No other cash outflows would be involved. The present value of the cash inflows would be $77,500. The profitability index of the project is closest to (Ignore income taxes.):

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answer is 0.25 profitability index = net present value / initial investment net present value = present value of cash inflows

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