Question: Capulet Industries Inc. is considering a project that provides a $0 annual cash inflow for the first five years and then provides $900,000 per year

Capulet Industries Inc. is considering a project that provides a $0 annual cash inflow for the first five years and then provides $900,000 per year for the subsequent five years. The project requires an initial investment of $1.8 million. The firm's required rate of retum for this project is 9.0%. What is the profitability index (PI) of the project in the previous question? O A. 1.264 OB. 1.596 O C. 1.750 OD. 1.925 OE. 2.086

Capulet Industrios lne. is considering a project that provides a 50 annual cash infow for the first five years and then provides 5900,000 per year for the subsequert five yeare. The project requires an initial investment of $5.8milion. The fimm's required rate of resum for this project is 9.0 h. . What is the prostabilty index (PI) of the project in the previous question? A. 1.264 8. 1.596 C. 1.750 D. 1.925 E. 2.086

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