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Problem:

Consider the following cash flows: Year Cash Flow 0 $-29,600 1 14,100 2 14,800 3 11,200 Requirement 1: What is the profitability index for the above set of cash flows if the relevant discount rate is 11 percent?

Required:

Question 1: What is the profitability index if the discount rate is 16 percent

Question 2: What is the profitability index if the discount rate is 23 percent?

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162013

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