You are offered an investment with returns of $ 1,200 in year 1, $ 4,704 in year 2, and $ 4,745 in year 3. The investment will cost you $ 7,535 today. If the appropriate Cost of Capital (quoted interest rate) is 11.1 %, what is the Profitability Index of the investment?

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Profitability Index of the investment Year Annual ... View the full answer