Question: 72. A machine will cost $28 000. It is estimated that it will generate $8 000 in after-tax savings each year during its five-year life.

72. A machine will cost $28 000. It is estimated that it will generate $8 000 in after-tax savings each year during its five-year life. What is the profitability index assuming a hurdle rate of 10 per cent? A. 1.08 B. 0.92 C. 1.24 D. 1.43

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