Question: Consider a project with cash flows Year 0 1 2 3 4 5 P $20 $10 $5 $3 $5 $10 Compute the profitability index based

Consider a project with cash flows Year 0 1 2 3 4 5 P $20 $10 $5 $3 $5 $10 Compute the profitability index based on a 10% cost of capital and compute the payback time. What is the ratio Profitability Index / Payback Time (rounded up to the nearest year)? (4 decimal places)

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