(Answered) Determining the after tax cash inflows

Accounting

Problem: Good morning food inc. is using the profitability index when evaluating projects. You have to find the PI for the companies projects assuming the companies cost of capital is 9.96 percent. The initial outlay for the project is $395,820. The project will produce the following end of the year after tax cash inflows of

year 1: 162,980
year 2: 88,786
year 3: 3,960
year 4: 397,131

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