The new technology will cost $21.41 in millions. The cost of capital is 6.8%. The next four

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The new technology will cost $21.41 in millions. The cost of capital is 6.8%. The next four years has the following cash flows (in millions) from implementing the new technology.

Year 1 2 3 4

3.74 9.57 2.95 7.84

What is the profitability Index for this technology purchase?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jun 23, 2023 06:52 AM

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The new technology will cost $21.41 in millions. The cost of capital is 6.8%. The next four

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Income Tax Fundamentals 2013

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