Question: 3. Peter is considering a project with an initial cost of $42,000 and annual cash inflows of $9,100 a year for six years. What discount

3. Peter is considering a project with an initial cost of $42,000 and annual cash inflows of $9,100 a year for six years. What discount rate, when applied to this project, will produce a profitability index of 1.0?

a. 7.00% b. 7.65% c. 7.88% d. 8.05% e. None of the above

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