A 25- year project has a cost of $1,500,000 and has annual cash flows of $400,000 in

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A 25- year project has a cost of $1,500,000 and has annual cash flows of $400,000 in years 1-15, and $200,000 in years 16-25. The company's required rate is 14%. Given this information, calculate the profitability index of the project.

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: May 28, 2020 04:16 AM

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A 25- year project has a cost of $1,500,000 and has annual cash flows of $400,000 in

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Profitability Index PI Present Value of Future Cash FlowsInitial ... View the full answer

Fundamentals of corporate finance

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