Question: Ben Lake Enterprises is currently considering a project that will produce cash inflows of $3,500 a year for 3 years followed by $1,200 a year

Ben Lake Enterprises is currently considering a project that will produce cash inflows of $3,500 a year for 3 years followed by $1,200 a year for 2 more years. The cost of the project is $10,000. What is the profitability index if the discount rate is 7 percent?

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