Question: A project had a staged investment distributed over the 6-year contract period. For the cash flows shown (next page) and an interest rate of 10%

A project had a staged investment distributed over the 6-year contract period. For the cash flows shown (next page) and an interest rate of 10% per year, determine the profitability index and determine if the project was economicallyjustified.

Year Investment, $1000 -25 0 -10 0 -5 0 0 NCF, $1000 per year0 5 7 9 13 15

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