A project with an initial cost of $61,600 is expected to provide annual cash flows of...

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A project with an initial cost of $61,600 is expected to provide annual cash flows of $12,600 over the 8-year life of the pro

Answer 1

Answer #1

Please find the solution in given screen shot,

Profitability Index = Present Value of Future Cash flow / Initial Investment Initial Investment = $61,600 Present Value of Fu

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Answer 2

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