Profitability index when evaluating projects

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Reference no: EM131021011

Company uses the profitability index (PI) when evaluating projects. The cost of capital is 14.52 percent. What is the PI of a project if the initial costs are $2351733 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $523107 per year at the end of the year.

Reference no: EM131021011

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