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15. Calculating Profitability Index
YEAR | Cash flow |
0 | -$16700 |
1 | 9700 |
2 | 7800 |
3 | 4300 |
a. What is the profitability index if the appropriate discount rate is 10% for the following cash flows?
b. What if the discount rate is 15 percent?
c. What if the discount rate is 22%?
Answer & Explanation
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