End-of-the-year after-tax cash inflows

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Reference no: EM131452847

Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company’s project, assuming the company’s cost of capital is 7.07 percent. The initial outlay for the project is $307,120. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $191,412

Year 2: $68,212

Year 3: $470,746

Year 4: $438,356

Round the answer to two decimal places.

Reference no: EM131452847

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