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Required information The following information applies to the questions displayed below.] Cardinal Company is considering a f

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Answer #1

Annual Cash flow = 382000+562000 = 944000

Present value of cash inflow = 944000*3.274 = 3090656

Present value of outflow = 2810000

Project profitability index = Present value of cash inflow/Present value of cash outflow

                                      = 3090656/2810000

Project profitability index = 1.10 Times

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