Question: A project that requires a 15 percent return has the following expected cash flows. Year Cash Flow 1 $90,000 2 100,000 3 110,000 4 120,000

A project that requires a 15 percent return has the following expected cash flows.

Year Cash Flow 1 $90,000 2 100,000 3 110,000 4 120,000 5 130,000

The initial investment is $300,000. Find the profitability index (PI).

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