Assume the annual discount rate is 7%. Calculate the profitability index for the following project: Years...

  

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Assume the annual discount rate is 7%. Calculate the profitability index for the following project: Years Net OCF 0 $50,000 1 $12,500 2 $12,500 3 4 5 $12,500 $12,500 $12,500 6 $12,500 Assume the annual discount rate is 7%. Calculate the profitability index for the following project: Years Net OCF 0 $50,000 1 $12,500 2 $12,500 3 4 5 $12,500 $12,500 $12,500 6 $12,500

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To calculate the profitability index PI we first need to calculate the present va... View the full answer