Question: A machine will cost $3,000 to buy and is expected to yield profits of $250 per year for ten years. What is the profitability index

A machine will cost $3,000 to buy and is expected to yield profits of $250 per year for ten years. What is the profitability index if the cost of capital is 11%?

a.0.49

b.+0.49

c+2.04

d.2.04

e.None of the above

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