Safis gluten-free bakery is thinking of buying a hybrid, Ask an Expert

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Safi's Gluten-free bakery is thinking of buying a hybrid electric vehicle that will allow them to deliver fresh hot baked goods for $47,000. The vehicle is expected to save the company money in gas and earn an extra profit totaling $9,500 per year for 8 years. After that, the car will need to be replaced. Their current cost of capital is 5%. What is the profitability index of this project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93049410

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