Question: Explain how to solve please!!!! Millicent Inc. is considering a capital project costing $47020. The project is projected to provide annual cost savings of $18000

Explain how to solve please!!!!

Millicent Inc. is considering a capital project costing $47020. The project is projected to provide annual cost savings of $18000 for the first 2 years and $13000 for the third year. The expected salvage value is $0 and the company uses straight-line depreciation. Assuming a 10% rate of return, what is the project's profitability index? 0.87 1.04 2.04 1.95

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