A ten year project costs $400,900 and produces $68,725 cash flows at the end of each of
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A ten year project costs $400,900 and produces $68,725 cash flows at the end of each of the following ten years.If the discount rate is 12%, should this project be accepted based on the profitability index rule? Why or why not?
Points:1
- No; because the PI is 0.97
- No; because the PI is 1.03
- Yes; because the PI is 0.97
- Yes; because the PI is 1.03
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