Question: A project has the following expected cash flows: CF 0 = - $ 5 0 0 , CF 1 = - $ 2 0 0

A project has the following expected cash flows:
CF
0
=
-
$
500
,
CF
1
=
-
$
200
,
CF
2
=
$
200
, and
CF
3
=
$
400
. If the projects cost of capital is 9%, what is the profitabilty index?

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