Question: Ben Lake Enterprises is currently considering a project that will produce cash inflows of $3500 a year for three years followed by $1200 a year

Ben Lake Enterprises is currently considering a project that will produce cash inflows of $3500 a year for three years followed by $1200 a year for two more years. The cost of the project is $10 000. What is the profitability index if the discount rate is 7%?

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