Using the profitability index when evaluating projects

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Reference no: EM131453559

Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining’s cost of capital is 7.59 percent. What is the PI of a project if the initial costs are $1,826,270 and the project life is estimated as 8 years? The project will produce the same after-tax cash inflows of $599,550 per year at the end of the year. Round the answer to two decimal places

Reference no: EM131453559

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