Question: An engineer has calculated that profitability index for a new proposal to be 1.025. The proposal's initial investment is $800,000, its terminal cash flow is

An engineer has calculated that profitability index for a new proposal to be 1.025. The proposal's initial investment is $800,000, its terminal cash flow is 0, and its annual operating cash flow after tax is $x per year for five years.

Find x if the project's required rate of return is 7%.

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