Question: Compute the Profitability Index statistic for 345 Rayzor Sharp Project and note whether the firm should accept or reject the project with the cash flows
Compute the Profitability Index statistic for 345 Rayzor Sharp Project and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. CF0 = -1000 CF1 = 500 CF2 = 480 CF3 = 400 CF4 = 300 CF5 = 150 0.19, reject 0.45, reject 1.19, accept 1.45, accept
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