Question: A firm is considering a project that has an initial cost of $28,000 and generates cash flows of $3,200 each year for the next 18

A firm is considering a project that has an initial cost of $28,000 and generates cash flows of $3,200 each year for the next 18 years. The discount rate for this project is 7% per year compounded annually. What is the profitability index for this project? Round all intermediate calculations to 6 decimal points. Your final answer should be within 0.03 of the correct answer choice. 1.15 1.63 1.23 1.45 A firm is considering a project that has an initial cost of $28,000 and generates cash flows of $3,200 each year for the next 18 years. The discount rate for this project is 7% per year compounded annually. What is the profitability index for this project? Round all intermediate calculations to 6 decimal points. Your final answer should be within 0.03 of the correct answer choice. 1.15 1.63 1.23 1.45

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