Question: A project that requires 1 3 percent return has the following expected cash flows. Year Cash Flow 1 $ 1 , 0 0 0 ,

A project that requires 13 percent return has the following expected cash flows.
Year Cash Flow
1 $1,000,000
21,500,000
32,000,000
42,200,000
52,500,000
The initial investment is $5,000,000. Find the profitability index (PI).

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