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What is the profitability index of the project

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You are considering a project that has an initial cost of $1,200,000. If you take the project, it will produce net cash flows of $300,000 per year for the next six years. If the appropriate discount rate for the project is 10 percent, what is the profitability index of the project?

Which one is it below?

1.09
2.09
2.18
0.09

Reference no: EM13509276

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