What is the projects profitability index

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problem 1: A project with an initial cost of $58,000 is expected to provide annual cash flows of $11,250 over the 7-year life of the project. If the required return is 9.4 percent, what is the project's profitability index?

Option 1: .963

Option 2: .803

Option 3: .883

Option 4: 1.038

Option 5: 1.084

Reference no: EM132469916

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