4. We compute the profitability index of a capital-budgeting proposal by: a multiplying the IRR...
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4. We compute the profitability index of a capital-budgeting proposal by: a multiplying the IRR by the cost of capital. b. dividing the present value of the annual after-tax cash flows by the cost of capital. c. dividing the present value of the annual after-tax cash flows by the cost of the project. d. multiplying the cash inflow by the IRR
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