Calculate the profitability index for a project

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1. Calculate the profitability index (PI) for a project whose present cash flow value is $500,000 with an initial investment of $430,000.

2. Will the headquarters of a franchise reject or accept a project for opening a new branch if the present value of its cash flow is $320,000 and the capital requested is $405,000?

Reference no: EM131287459

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