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What is the profitability index for the equipment

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Reference no: EM132536060

Question 1: A company is considering the purchase of new equipment for $39,000. The projected after-tax net income is $6,000 after deducting $13,000 of depreciation. The machine has a useful life of three years and no salvage value. Management of the company requires a 12% return on investment. What is the profitability index for this equipment

Reference no: EM132536060

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